When you posted the link to the Telegraph article, which referred to the possibility that Spain’s rating is under review, I merely replied that the US and many other countries are being similarly reviewed, and the US in particular has far more serious debt problems than Spain.
And anything that happens in the US will affect the rest of the world, especially the Eurozone, of which Spain is the fourth largest member.
“Moody’s issued a downgrade warning on Spain owing to “high refinancing needs in 2011” and the risk of further bank bail-outs. It said central and regional governments must finance €200bn next year. Spanish lenders have to roll over a further €90bn. “
Spain needs an awful lot more than €290 billion in 2011. The figures close to €600bn.
Downgrades, roll overs and bail outs are inevitable to avoid debt defaults. The country is knackered. That’s what happens when hopeless Socialist Governments live beyond their means on other peoples money.
The Spanish people have much more pain to come.