You know those funnel coin collectors, where you put the coin in a slot and it rolls on its edge into the funnel, and as it rolls around the funnel, moving lower and lower, the coin also goes faster and faster? Greece's economy is the coin, and it is spinning faster and faster into oblivion. CNBC reports that Standard & Poor have downgraded Greek bonds from "CCC" to "selective default." The downgrade was apparently the result of an agreement between Greece and the EU to reduce its debt, in part, by buying back some of its bonds. The story goes on to indicate:
The decision to lower the sovereign rating follows the government's invitation to private sector bondholders to participate in the debt buyback "which under our criteria we view as a selective default," S&P said in an e-mailed statement.
"When the buyback is consummated (which we understand is scheduled to occur on or about Dec. 17, 2012), we will likely consider the selective default to be cured and raise the sovereign credit rating on Greece to the 'CCC' category," the statement said.