Zero Hedge reports on the downgrade of Germany…
6/26/2012: Federal Republic Of Germany: EJR lowered AA- to A+ (Neg.) (S&P: AAA) (3413Z GR)
Stuck – whether or not Greece and other EMU members exit, Germany will be left with massive, additional, uncollectable receivables. Via the ECB’s Target 2, Germany is owed EUR700B of which perhaps 50% is collectible and then there is the banks’ southern EMU exposures. Germany’s debt to GDP was 87% as of 2011. However, increasing Germany’s debt by EUR700B to EUR2.9T for its indirect exposures raises the adjusted debt to GDP to 114%.”
And industrial production in Germany declined 6.6 percent in May of 2012.