CREDIT RATINGS LOOKING BLEAK
Standard & Poor’s reiterated its position today that if the U.S. government misses its scheduled debt payments it could cut the U.S. credit rating as early as August. There is some tie-in to both raising the debt ceiling and balancing the budget that S&P needs to see to avoid that type of action. The trickle-down effect could be catastrophic to a number of companies, including Fannie Mae and Freddie Mac, plus the sovereign debt rating and the insurance industry. Senator McConnell’s “back-up plan” that had been discussed as a fallback option has just been discredited by Moody’s as not doing enough to balance the budget and would still put the U.S. on a path for a negative credit outlook.
European leaders are set to move forward with the plan to prevent contagion and help Greece move past its debt crisis. An emergency summit was called to order when other European economies, like Spain and Italy, were about to get caught in the metaphorical crossfire of the other PIIGS nations (Portugal, Ireland and Greece). European leaders are also set to promise a “Marshall Plan” of European investment to help revive the Greek economy, due in large part to the very harsh austerity measures instituted by the European Union and International Monetary Fund.
At 12:15 PM (CT) the APMEX precious metals spot prices were:
- Gold – $1,587.80 – Down $10.10.
- Silver – $39.00 – Down $0.60.
- Platinum – $1,785.80 – Up $9.70.
- Palladium - $809.30 – Up $13.60.