You thought Iceland was in dire straits? Maybe Pakistan will beat it to the first-to-default finish line!
Pakistan’s economic crisis deepened on Monday after the rupee sank to an all-time low and Standard & Poor’s, the global rating agency, downgraded the rating on the country’s sovereign debt to CCC-plus – a few notches above default level.
Just be thankful that as bad as the credit crisis is getting, this kind of thing is still unthinkable in the US:
Pakistan’s illiquid money markets saw volatile call money rates surge to 40 per cent before settling back below 30 per cent.
(HT: Alloway)