This is a glimpse into the insane thinking of some economists.
S&P raises Spain credit rating as economy improves
MADRID (AP) — Standard & Poor’s rating agency has upgraded Spain’s sovereign credit grade a notch, the third agency to do so in recent months and a further sign the country is turning the corner after five years of economic turmoil.
The agency raised the grade to BBB from BBB-, citing improved economic prospects and praising the conservative government’s structural and labor reforms since 2010.
Two other agencies, Moody’s and Fitch, have also upgraded Spain this year.
Standard & Poor’s also raised the country’s average economic growth prediction for 2014-2016 to 1.6 percent from 1.2 percent.
The move reflects growing investor confidence in Spain’s ability to repay debts. Spain’s borrowing costs have dropped from perilously high rates in 2012 to pre-crisis levels although the country still has a massive 26 percent unemployment rate.
Spain’s economic health is very poor, and it isn’t getting better, it’s just stopped getting worse, mostly because it would be very difficult to do worse.
Let’s look at a couple of indicators as to how we can expect Spain to pay back its obligations.
Even if the growth hits 2%, it’s still a horrible spot to be in. So, surely, they’ve done something about their debt, right?
Oh, well, no, not really. Nothing says raise the credit rating like a debt to GDP ratio nearing 100%!
They’ve learned nothing.
suyts space 
Spain, a house of (credit)cards built on a wonky table, onboard the EU ship of thieves.
What could possibly go wrong?
Futre AAA rating if ever there was one!!!
🙂
Ours in the UK is 81.77% of GDP (up from 29.34% in 2002) so I guess that’s a success 🙂
“This is a glimpse into the insane thinking of some economists.”
American rating agencies are 2 Dollar hores. Which one was it that got blackmailed by Holder? None of them dare rattle the cage anymore.
Oops; that should have been a reply to the headpost, not to you, Rich. Sorry.
Indeed. The muddled thinking of the lunatics, today. I’m old enough that I believe the big crash may not happen in my time…. maybe, but, it surely will come. Just as there is no perpetual motion machine, neither is there a perpetual wealth machine ….. for the exact same reason.
Yes, we just escaped a banking crisis a few years ago, but I have bought a few valuables (gold etc.) just in case.
Wise move. I did a post a while back on the timing of recessions …. they are a naturally occurring event, though some are made much worse by our governments. We’re going to be due another one, but, we’ve never really gotten out of the last one. On average, in the US, it happens about every 8 years, sometimes earlier, sometimes later. Generally, when the US is in a recession, so too, are many other nations. I don’t know what’s going to happen because there’s only one parallel I can find …. the Great Depression.
This should be good
The Corruption of the Mainstream Media – A Conversation with Allen B. West
http://www.planbeconomics.com/2014/05/the-corruption-of-mainstream-media.html
Springtime for Bitcoin. What gives? from 440USD to 590 in 7 days.
http://bitcoincharts.com/charts/bitstampUSD#rg60ztgSzm1g10zm2g25zv
If it does not fit their ignorance, they do not want to learn it.