Bankruptcy

Open Mouth, Insert Foot

By Adam Levitin

Japan's debt got downgraded by S&P because it doesn't believe that the Japanese government is serious about taking measures to cut its deficit.  And here's what the Japanese Prime Minister Naota Kan had to say, ?I just heard that news.  I am a little ignorant on those kind of matters.  Let me look into it more.? 

Brownie, you're doing a heckuva job.

Even before the downgrade, Japan was just barely skating by--low interest rates make the huge Japanese debt manageable.  If interest rates go up a couple of points, Japan's going to have one serious financial crisis.  

Full post as published by Credit Slips on January 28, 2011 (boomark / email).