Saturday, September 22, 2012

Is Great Britain's Downgrade Next?

In this paper the authors make the case for an impending downgrade of the British Pound.  Essentially it boils down to the Pound being in no better shape than the Euro, but currently looking decent only because everyone's attention is on the Euro and Dollar. 

Consequences?  Massive loss of confidence in currency markets.  Maybe a little buoying of Dollar/Euro, but not much.  Movement away from cash instrument. 


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