The collision of global markets and social mood

Monday, November 22, 2010

Are New Zealand Banks Next?

I found this at the bottom of a news story about . . . Ireland:

Nov. 22 (Bloomberg): S&P lowered [New Zealand’s] credit outlook on its AA+ rating to negative, saying in a statement that “the main risk to the ratings would be a significant weakening in the credit quality of New Zealand’s banking sector.”

I checked the Bloomberg stories than ran with the New Zealand downgrade as the lead, and none of them had any reference to the banking sector.

The point is, New Zealand should not be having any trouble with its banks at this stage of a global recovery . . . if there truly is a global recovery.

If you are doubtful, however, that there is a true global recovery and feel instead that it is a mirage created by reflation, then this is just the sort of information you'd expect to find buried in a news story about an entirely different country.

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