So sovereign nations are having their debt ratings downgraded because some private bankers sold other private bankers bad paper? Yeah, that's exactly how it works...
Actually it is, because these are the largest banks in Fr and Germany with combned exposure of almost $200B
http://blogs.reuters.com/felix-salmon/2011/06/17/parsing-banks-expsosure-to-greece/ (65B Euro in France, 40B Euro in Germany). And if this debt fails, Each government has a choice of letting their banking sector melt down, OR of bailing out the banks.
Well of course they will baile out the banks. But that $100B expoure in France is 5% of GDP.... So if a company was about to have 5% of its annual reevenues (not earnings revenues) at risk of evaporateing, I guarantee you Moody's would mark down their bonds
And that's just greece. Taht doesn't include Italy. And remember the key in Greece and Italy was not simply their social welfare spending, it is that they were lying to investors about their revenue collections by almost a factor of 2
FACTS MATTER lukey
Facts like What is different now vs. in the middle of the worst crash in human history when they didn't mark down the credit ratings
Facts like the French and German banking systems exposure to Greek and Italian sovereign debt.
Facts like the corrpution and tax avoidance in Greece and Italy vs germany and France
FACTS MATTER
ideological claims like yours??? not so much