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April 28, 2010
Posted: 1120 GMT
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GregoryK   April 28th, 2010 12:21 pm ET

This is not about Greece any more !
Its obvious that we have a currency war here !
1000 spread for the Greek 10 years bond is definitely completely out of the reality and does not reflect the truth about the Greek economy.
Yes its bad .....but not that bad.
In my view the purpose of all these downgrades by Financial Institutions and reports by media is not about downgrading Greece is about downgrading Euro
This is a Euro-Dollar war .
What is going to be the dominant currency ?
It is also very interesting to examine what is the role of media in all this
Do they just report the story or they are part of the story at the end ?

Theresa Eclair   April 28th, 2010 12:21 pm ET

Junk is such a harsh word.

ana petrov   April 28th, 2010 12:49 pm ET

Thank you for such a good explanation about ┬┤junk company┬┤ and the others more certain countries ....

Shuvankar Mukherjee   April 28th, 2010 2:05 pm ET

Thanks Richard for the a very precise report.

Maria P   April 28th, 2010 2:24 pm ET

Romania IS part of the EU.
Junk research.

Naoko   April 29th, 2010 3:21 am ET

First of all, S&P should be rated for credibility of their research.

Ryan   April 29th, 2010 6:00 am ET

Junk? I thought it was a C or D.. Those countries (Greece and Iceland) does not derserve even a B. Without those bailouts, they have already defaulted a long time ago.

And for the US... having a triple A? Oh c'mon.. with a huge budget deficit and in recession, govt bailouts and huge trade deficits.. what a rating.. funny... we'll who cares, S&P is from US anyway.

ana petrov   April 29th, 2010 12:19 pm ET

Sir Richard certainly knows that Romania is a part of the EU. That is one kind of lapse of tongue nothing more...forget that...

Prof Dave W. Dawson   April 29th, 2010 1:12 pm ET


Prof Dave W. Dawson   April 29th, 2010 6:22 pm ET


Kostas Alevizanos   May 2nd, 2010 2:58 am ET

If you really want to know why the Greek bonds are junk, you may simply ask the Finance Minister of Greece how many civil servants are currently working at civil sector in Greece. He definitely can't tell you, because he really doesn't know. How this is possible it's another story. A recent estimation shows that there are about 1.5 million civil servants in a 10 million people country. The total labor force of the country is not more than 4 million people, which means that about 50% of them are civil servants. If you add to this number the army personnel, police etc. etc. then everything becomes so clear. Greece is not a country of the Western world, it's more like a state of the former Soviet Union. The truth is that the political system relies on civil servants. Since 1974 politicians were "buying" votes of the citizens by hiring most of them in civil sector and/or by giving unbelievable raises to their salaries. At the same time borrowing became the favorite habit of all Greek goverments till they lost control. The consequences were high taxation because they had to pay so many salaries, all investors abandoned ship named Greece for neighbor countries with low taxation,- imports, corruption, budget deficit and public debt skyrocketed while exports sagged. Are you still wonder why???

George (Geosak)   May 3rd, 2010 8:20 am ET

I'm setting my Facebook status to "Junk Status" haha

Lucian   May 4th, 2010 9:27 pm ET

When u do a business review u have to be accurate, saying Romania isn't a part of EU doesn't say too much about this show. I wonder if mr Richard knows what is the national currency of Botswana and corelate that with romanian dictionary, then he will know my opinion of his show. That's an accurate busines review.

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