European finance ministers came to Spain's rescue Saturday, agreeing to lend the ailing nation's banking sector as much as $125 billion (100 billion euros) as part of the latest Band-Aid for the Eurozone debt crisis.
Madrid said it would detail exactly how much it needs following an independent audit report in a little over a week.
The decision to aid Spain came after a two-and-a-half-hour conference call with the finance ministers of the 17-member bloc. The substantial size was settled on to dispel any lingering doubts that the bailout wouldn't be big enough.
But a fix for Spain's banks may not be enough to save the whole country.
"This year is going to be a bad one, growth is going to be negative by 1.7%, and also unemployment is going to increase," Spanish Prime Minister Mariano Rajoy said Sunday.
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Eurozone Debt Crisis Gets More Costly with Spain's Latest Move
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A Sovereign-Debt-Default Survival Kit: The Four Countries That Will Keep Their AAA Ratings
Stories about debt downgrades and sovereign-debt defaults are dominating the headlines.
And it's no longer just Europe that we have to be worried about. On Friday, Standard and Poor's warned that there was a 50-50 chance that the United States would lose its AAA debt rating in the next 90 days - even if the debt ceiling didn't result in a U.S. default.
When you get right down to it, we're all asking the same urgent question: Just where the hell can I go for a really safe investment?
Fortunately, I have an answer for you.
With a cut in the country's credit rating, those days would be over.
If you're searching for alternatives to U.S. debt, the good news is that Standard & Poor's has granted 18 other countries that top AAA credit rating. The bad news is that the selection isn't as luxuriant as it first appears.
It's important to separate the prospects from the suspects.
And it's no longer just Europe that we have to be worried about. On Friday, Standard and Poor's warned that there was a 50-50 chance that the United States would lose its AAA debt rating in the next 90 days - even if the debt ceiling didn't result in a U.S. default.
When you get right down to it, we're all asking the same urgent question: Just where the hell can I go for a really safe investment?
Fortunately, I have an answer for you.
The Sovereign-Debt-Default Survival Guide
S&P put us on notice back in April, when the ratings agency affirmed the country's AAA/A-1+ sovereign credit ratings - but also cut its outlook on the United States' long-term debt rating from "stable" to "negative." The last time that happened to the United States was 70 years ago - right after the attack on Pearl Harbor. What S&P is talking about now, though, is a reduction of the country's actual credit rating. For years, investors throughout the world have viewed U.S. government debt as the "safe haven" of last resort.With a cut in the country's credit rating, those days would be over.
If you're searching for alternatives to U.S. debt, the good news is that Standard & Poor's has granted 18 other countries that top AAA credit rating. The bad news is that the selection isn't as luxuriant as it first appears.
It's important to separate the prospects from the suspects.
To continue reading, please click here ...
U.S. Government Faces Credit Rating Downgrade Without Radical Budget Changes
Could the United States lose its status as the world's premier safe harbor for global investors?
Credit-rating heavyweight Standard & Poor's last week threatened to cut the United States' top-tier credit rating, saying the country's political infighting and burgeoning debt may warrant a downgrade.
In short: This country's days as a AAA-rated investment may be numbered.
Credit-rating heavyweight Standard & Poor's last week threatened to cut the United States' top-tier credit rating, saying the country's political infighting and burgeoning debt may warrant a downgrade.
In short: This country's days as a AAA-rated investment may be numbered.
Does the United States Still Deserve its "AAA" Credit Rating?
Could the United States lose its status as the world's premier safe harbor for global investors?
Credit-rating heavyweight Standard & Poor's this week threatened to cut the United States' top-tier credit rating, saying the country's political infighting and burgeoning debt may warrant a downgrade.
In short: This country's days as a AAA-rated investment may be numbered.
Credit-rating heavyweight Standard & Poor's this week threatened to cut the United States' top-tier credit rating, saying the country's political infighting and burgeoning debt may warrant a downgrade.
In short: This country's days as a AAA-rated investment may be numbered.
Moodys Warns U.S. May Get Credit Downgrade in "Coming Two Years"
The United States' AAA credit rating may be at risk sooner than previously thought as the nation fails to deal with its growing debt, Moody's Investors Service warned last week. Moody's said December's extension of the Bush-era tax cuts, combined with results from the November elections, may lead to further gridlock in Congress, increasing its doubts about the federal government's determination to reduce its debt. The credit ratings agency said it might put a "negative" outlook on the AAA rating of U.S. debt sooner than anticipated as the country's budget deficit expands.
U.S. Credit Downgrade Possible, Moody's Warns
The United States' AAA credit rating may be at risk sooner than previously thought as the nation fails to deal with its growing debt, Moody's Investors Service warned last week.
Moody's said December's extension of the Bush-era tax cuts, combined with results from the November elections, may lead to further gridlock in Congress, increasing its doubts about the federal government's determination to reduce its debt.
The credit ratings agency said it might put a "negative" outlook on the AAA rating of U.S. debt sooner than anticipated as the country's budget deficit expands.
Moody's said December's extension of the Bush-era tax cuts, combined with results from the November elections, may lead to further gridlock in Congress, increasing its doubts about the federal government's determination to reduce its debt.
The credit ratings agency said it might put a "negative" outlook on the AAA rating of U.S. debt sooner than anticipated as the country's budget deficit expands.