Moody's downgrades Hungary's debt to Junk status

Whilst this story is no doubt distressing for Hungarians the real news is that Austrian banks are on the hook for much of this govt. debt and that of Eastern Europe. Austrian Banks looked East during the lending binge of the 00's, when other countries in the Euro zone looked South and West, as a result they are just starting to suffer the increased risk of debt defaults. 

If Austrian banks falter in the coming months could we see a financial Anschluss with Germany coming to the 'rescue'? Then Germany could, along with the solvent Nordic nations, break away from the current Euro and form a 'AXIS Euro', leaving those on the old Euro to circle the drain of history?

From AlJazeera:

Credit agency Moody's has cut Hungary's debt rating to below investment-grade, citing high debt levels and weak growth prospects.

Moody's also cited uncertainty about Budapest's ability to meet fiscal goals as justification for cutting the debt one notch - from BAA3 to BA1.

The government said Friday's move was part of a series of "financial attacks against the country".

Last week, the Hungarian government announced it would seek a financial safety net from the European Union and the International Monetary Fund, but no new loans.

Reaction to the Hungarian rating cut has led to other Central and Eastern European currencies to sell at a lower rate, adding to a wider risk aversion as the eurozone debt crisis is threatening to spill onto the region's banks.....read on

From: Euronews | Nov 25, 2011