Earlier this week credit rating agency Standard & Poor cut Greece's long-term credit rating to 'selective default'. Now credit rating agency Moody's has gone one step further. Today's downgrade has been widely reported.
According to AlJazeera, "Ratings agency Moody's has downgraded Greece to the lowest rating on its bond scale, saying that risk of default remains high even if a bond-swap deal with banks and other private investors, due to be completed this month, is successful."
" Moody's lowered Greece's local and foreign-currency bond ratings to C from Ca, the lowest possible.
It would seem that Greece and its people are in a no win situation. Whatever means are taken to address their debt crisis will result in a negative impact in the short term and maybe even the long term. With high unemployment already it is very hard for the ordinary Greek people. The "fat cats" of Greece will no doubt still prosper. Many ordinary citizens though have lost their homes as well as their means of making a living.
Unsurprisingly the barter system is continuing to grow in Greece.
It is difficult to see what Greece can do. It is now governed by a non elected leader and nationwide elections are almost upon them. Having been mismanaged for years, by successive governments, who will want to take on the mantle, who will the Greek people choose of the Greek Parliament and who can make any real difference for the people.
Whilst countries such as Germany and France who are heavily tied into Greece's debts want to protect their own interests , those of the Greek people are ignored. Shame on you all. Remember the human cost of this crisis.
Is it time to let Greece go?
Eileen Kersey manages TEK Staff Blog