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.

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Categories: Europe, Politics
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  1. November 24, 2010 at 8:12 am

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