We are starting today an investing blog analyzing the recent European crisis – namely the sovereign debt crisis of the PIGS, as well as their consequences for the investors.
Today, after many threats from Moody’s, United Kingdom and Germany got a relief from the eternal ratings competitor, Standard & Poor’s. Namely, the triple A ratings of UK and Germany have been spared. S&P even got so far as to state that they think that Germany will weather the crisis without big issues, whilst UK will return to economic growth by the end of the month.
If this is not good news for the EU investors, I do not know what it is. Standard & Poor’s basically said that even if Greece exits the Eurozone or if crisis deepens for Spain or for Italy, these two economies will go unabated from their way. It also means that the pockets of the EU are still big enough to cover the debts of the other states (to a certain extent). Whether this is a vote of confidence from S&P or if it is just a sign of support, I do not know. But the markets should be moving up by now…