Skip to comments.S&P cuts Italy sovereign rating to BBB-, just above junk
Posted on 12/07/2014 6:20:32 AM PST by TigerLikesRooster
S&P cuts Italy sovereign rating to BBB-, just above junk
ROME Fri Dec 5, 2014 1:32pm EST
Dec 5 (Reuters) - Standard & Poors on Friday cut Italy's sovereign credit rating from BBB to BBB-, just one notch above junk, citing the country's weak growth and poor competitiveness which undermine the sustainability of its huge public debt.
(Excerpt) Read more at reuters.com ...
Shouldn’t be a problem, so long as Germany is sound.
Italy is our future under Obama or Hillary.
Think about it... Italy has only 20% of the US’s population, but the same number of government employees - usually impeding progress and prosperity.
The coast guard defends the country against foreign armies with plastic little boats (fiberglass), while the Guarda di Finanza (IRS) has huge, menacing military war vessels bristling with armaments - shows who they think the real enemy is...
In the last two years I’ve seen John Boehner and Mitch McConnell go along with the raising of our nation’s debt ceilings.
The Republicans want to better manage the welfare state, not reduce or eliminate it.
The “Conservative” government in the UK is claiming great success in the face of a debt that’s well over two trillion dollars and pretending all is well ahead of next May’s
Watch out because the R’s and D’s in this country will do what the R’s and D’s of Europe have done. There will be spending cuts and tax increases to band aid a failing system together?
Paul Ryan agreed to new taxes called ‘airline fees’ in the current session of Congress and there’s talk of “tax reform” among Republicans in Washington.
Hold onto your wallets because they are coming sooner or later for more to prop up the unsustainable system of government we have at all levels.
We went to Italy 6 years ago for a nice vacation. It was obvious that tax avoidance is a popular, full contact sport among the citizenry.
With Italy being such a large creditor, could this trigger some CDS contracts?
Doesn’t at least some of those depend on the credit ratings of the nations issuing debt to be at a certain credit rating?
Yes, and this is one of the issues with a VAT-type of approach. IMHO it is much easier to avoid taxes on purchases. I personally think a flat income tax is the easiest and most fair.
That said, I worry about Italy. Their high school dropout rate is close to 19% (ours is around 8-9%). Only 56% of those who enroll in college complete their degrees, and between 36-37% of those under 24 are unemployed. This, from the country that gave us Galileo, Da Vinci, and that was the center of the Roman empire. Political corruption is a huge problem.
Coming soon to all socialist states
The “Conservative” UK government is committed to not cutting the health service or foreign aid.
If Cameron is re-elected in the May 7th election the UK will have to cut fire, police and the military to maintain that policy.
The politicians aren’t telling people that but that’s the truth. The UK right now is running a yearly deficit at 5.2 percent of GDP, the US is only at 2.8 percent right now and France 4.4 percent.
Just for fun, I looked at buying a house in Italy. Anything near what I could afford had the word “ruins” in the description.
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