Cooking in Hot Greece

[marmar]

from 247WallStreet:



Bad Books Cook Greece (Update 2)
Posted: April 22, 2010 at 6:18 am



The head of the International Monetary Fund said Thursday that the debt crisis in Greece is serious and there would be no “silver bullet” to resolve the issue in an easy manner.

Moody’s lowered Greece’s sovereign ratings to A3 from A2 and placed them on review for further possible downgrade. (Updated 10.50 EST)

There was alarm in the global credit markets and among the Eurozone nations when it was discovered late last year that some of the numbers in the Greek budget were wrong. The news gave investors and potential investors in Greek sovereign debt pause.

Greece’s inability to properly keep its finances and present an accurate budget have caught up with it again. The Eurostat research agency says that the numbers in the Greek budget are wrong again.
According to MarketWatch, “Eurostat is expressing a reservation on the quality of the data reported by Greece, due to uncertainties on the surplus of social security funds for 2009, on the classification of some public entities and on the recording of off-market swaps,” the agency said. Eurostat said that the Greek deficit/GDP ratio could have to be revised from 13.6% of GDP to 13.7%. .........(more)

The complete piece is at: http://247wallst.com/2010/04/22/bad-books-cook-greece/

[ZeitgeistObserver]

1. This is going to take a long time to sort out.

Especially since several other countries are in the same boat.