Greek default would hit others in euro zone (Moody’s)
“NEW YORK (Reuters) – Around 450,000 people who work for U.S. states, counties, cities, towns and villages could get pink slips in fiscal 2012, sharply up from the 300,000 positions shed this year, a report said on Monday.
The number of job cuts will rise mainly because the federal stimulus program is ending while the cost of Medicaid is “spiraling,” said the report by UBS Investment Research.
States got billions of extra dollars primarily for education and Medicaid from the stimulus plan. Medicaid is the state-federal health plan for the poor and disabled.
Maury Harris, a UBS economist, on a conference call said the deficits states and municipalities will have to close will climb to $155 billion in fiscal 2012 from about $108 billion in the current fiscal year.”
“ATHENS (Reuters) – A Greek debt default would hurt other peripheral euro zone states and could push Portugal and Ireland into junk territory, Moody’s said on Tuesday, warning it would classify most forms of restructuring as a default.
Markets have piled pressure on heavily indebted euro zone countries this week as investors worry not just about Greece but also about Spain, where the government suffered a major defeat in regional elections at the weekend, and after ratings agencies warned about the health of Italy and Belgium.
“A Greek default would be highly destabilizing and would have implications for the creditworthiness of issuers across Europe,” Moody’s Investors Service’s chief credit officer in the region, Alastair Wilson, told Reuters in a telephone interview.”
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