Greek Update - Moving to Portugal

Location Date: 
July 6, 2011


Well it only took one day for the ratings agencies to kick another kid on the block – Portugal.  A downgrade by Moody’s yesterday has Portuguese 10 year yields spiking 143 bps to close to 12% this morning.  Irish debt is falling in sympathy while Bunds rally and the Euro falls again.  Just a reminder that we will have “rolling bond black outs” in Europe and elsewhere globally (US, Japan etc.) as markets and politicians begin to address the sovereign debt/deficit issues.  That “road” we discussed yesterday looks more like a couple of “blocks” these days.  Gold still looks great as they say it has no liabilities attached to it.

Jim McGovern