RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 31/03/11

Comments

[jkruffin]

Thursday, March 31, 2011 ?06:49 AM
DailyFXTeam: CORRECTION: S&P DOWNGRADES PORTUGUESE BANKS FOLLOWING SOVEREIGN RATING CUT

And the Euro actually moves higher.....WTF?  This whole financial system is in disarray, it will be a complete collapse of everything when its time to pay the piper.

[Josephine29]

As ever I see that Notayesmanseconomics was ahead of the game today.

In a tale that has become more than a little familiar Portugal’s national accounts have come under challenge. Or let me put it more accurately those who have unofficially complained about the treatment of Portugal’s accounts have begun to gain some official support. At the moment a bank failure from 2008 is likely to be put in the accounts which means that Portugal is now less likely to hit its fiscal deficit target of 7.3% of GDP for 2010 let alone her previous/caretaker government’s claims that the deficit target will be beaten. There are also questions about her treatment of privatisations.

http://t.co/aA8FzGP

I see on the newswires that Portugal's deficit is now 8.6% of GDP giving her government about the same respect for the truth as Greece's past governments!