The news got worse yesterday for Ireland as an additional downgrade of the European country was announced by the ratings agency S&P. This news will hurt the stock markets and bond markets in Europe in my opinion and may carry over to other world markets. As debt from Ireland is starting to blow out relative to other European countries this fiscal crisis is carrying over to the political world as well.
This will also happen in the USA if we don’t get our house in order soon. This should be a wake up call for all nations that continue to spend beyond their tax revenues coming in. I think that the party in equities may be capped by this event but time will tell.