Yes, now the next rating agency has decided to downgrade Greece. Not to say that one should not downgrade Greece.

"The government remains committed to the implementation of the reforms announced…and will intensify its efforts to restore the viability of fiscal and economic trends in Greece," the statement said.

We shall see…

But what gets me, is the ratings agency credit worthiness of California. California is rated A+, and so is Louisiana. Yet, is California worthy of this rating?

But the fact that California still has been able to borrow tens of billions of dollars via short- and long-term muni bond debt in recent months shows that many investors don’t believe that default is a real possibility.

Watkins thinks muni investors are too sanguine. The state, he notes, resorted to a host of gimmicks to come up with a (temporarily) balanced budget last summer. Now Sacramento faces a $21-billion budget gap over the next two years.

Tricks, hmm, where did I see this? Oh yeah GREECE! But hey this is California in the US, and all is ok! And hey these “investors” sure know their stuff. OOps you mean like AIG? Look I am not debating the reason for downgrading Greece. What I am debating is why a bunch of agencies would downgrade one, but not the other.

But there is an interesting thing going on and that I am watching very very closely. It appears in the Asian sessions the Euro finds support and rises, and that has me wondering. Are the Asians taking the moment to switch from Dollars to Euros?

I wonder…