Home > Europe, Politics > PIIGS: All but one have fallen

PIIGS: All but one have fallen

I’ve been gone a bit, but I see some excitement has occurred! Here’s the rundown:

  • Portugal: Downgraded
  • Ireland: Downgraded
  • Italy: Not Downgraded <– Why not!?!??
  • Greece: Really Downgraded (junk status)
  • Spain: Downgraded

All that remains is Italy, and that doesn’t make any sense. For starters, Italy is over 118% over-leveraged. To compare – Ireland is only some 65% over-leveraged and it got downgraded. Moody’s apparently thinks Italy is ok because it is always this crappy and doesn’t have the amount of public debt that the others have.

Wait, what? It’s ok because it’s always crappy? That’s like saying a Yugo is ok because it is a crappy car. As if somehow the consistent crappiness is protection from being crappier.

Here’s one bright spot that Italy did well I guess:

Italy weathered the downturn better than other countries, Moody’s said, because “its banking system was less exposed” and it “used fewer public resources to support the financial system and the economy”.

Look at that! They’re in better shape because they DID NOT offer public financed bailouts and didn’t loan money to people that couldn’t pay it back. I guess all those years of blatant corruption has taught them the dangers of being myopic.

Categories: Europe, Politics
  1. No comments yet.
  1. November 24, 2010 at 8:12 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: