An American observer comments on French politics.
Well, they can ALSO keep worrying, we got the "perspective négative".
WHile the EC governments with all their perks for the general population need to do something about generating a real economy, it certainly takes 'odace' for S&P to consider that their ratings should be taken seriously. These are the people that rated Goldman-Sachs as sound just weeks before they collapsed and never listened to many economists who warned of the impending bubble economy collapse.
Didn't S&P also downgrade the US in August?The same Us that's recovering right now?politically though it's a big deal since I clearly remember the government saying "it's a national treasure" and even "if you elect Hollande it's bye-bye triple A rating"... now that it's gone, they look stupid and no amount of "it's not about us and it's not that bad anyway" will make up for that. People have a goldfish's memory when it comes to politics, but that was just 3 months ago. Guffaws can be heard in bistrots and living rooms everywhere.
@ DavidinParis: true, this AA+ notation remains, at best, funny. Who would seriously bet that there will be no sovereign bankruptcy in France, AND no devaluation of the euro / no large inflation?
Economically, this is a non event as it has been factored in the price of French bonds for weeks, if not months.Politically, this means that Sarkozy's bid to be re-elected is as good as dead.
Post a Comment