Ratings Agency Downgrades Italy's Debt Rating

Discussion in 'Current Affairs, News and Analysis' started by DesktopCommando, Sep 20, 2011.

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  1. The A+ rating was being artificially maintained by other Eurozone members purchasing Italian bonds to keep the yields low.

    This was inevitable really. They've a long way to go before they get to Greece's level.
  2. It was inevitable. Any cash loaned to Italy will just end up being spent on prostitutes by Berlusconi.
  3. And fair enough too. :)
  4. The R.A.F. tried hard at pumping money into the Italian economy but to no avail. Mot their finest hour.
  5. Italy does have something of a functioning Tax Collection facility in the North of the Country, unlike Greece who don't have one anywhere. If there was a Greek Island with two people on it - one a Tax Collector - they'd still only get 10% of the tax owed. Portugal is the next one to go IMHO. See the Bubbles are talking about a referendum about staying in the Euro. I'd like something similar for the UK.
  6. Don't understand the Italian economy. Fairfew Italian cars on the streets, engineering products around, helicopters in the sky and food products on the shelfs. Compared to us their industry seems posatively booming?
  7. Wordsmith

    Wordsmith LE Book Reviewer

    Italian growth has been stagnant for years - unlike Italian government spending. Another nation living beyond their means and in denial about it. Unlike the UK (which at least has a semi-realistic plan to cut the debt), Italy has just put a few sticking plasters in place. Italian debt is at 120% of GDP and set to go higher. (We are heading for 80% which is bad enough).

    It's our good old friend the Euro again. Had Italy still had the lira, it would have fallen in value against the other European currencies and provided a bit of a safety value. Because Italy is in the Euro her exchange rate is fixed against (say) Germany. So Italy has steadily exported less to Germany and imported more. Italy still has some quality industry, but its not growing. And without growth, you can't afford to increase your government spending.

    Italy is not yet a total basket case, but with Berlusconi at the helm, they're getting there.

  8. I read somewhere that if Milan folk declared their real earnings to the taxman they'd be by far the richest city in europe.
  9. I heard the same about Greece.
  10. Alsacien

    Alsacien LE Moderator

    Yeah, because they were really much better off with the Lira were'nt they........no problems at all....
  11. 1. Italy North and South are just as bent and much of the econemy is done on the Black.

    Doctors, Dentists et al have a two book rule to avoid tax. Even the average shop has a list price of sat 25 .50 fo an item . You rock up and buy it and the vendor says "Oh Ok make it 25 for cash" That goes for evertything .

    2. Who/what TF are the bubbles?
  12. Alsacien

    Alsacien LE Moderator

    Bubbles - bubble and squeaks - Greeks
  13. Wah shield on: Bubble and squeak=Greek. Wah shield off. Poor drills having a colonial explain that to you.
  14. Wordsmith

    Wordsmith LE Book Reviewer

    It would be an interesting counter-factual. I think the Italian economy has been stagnating and thus been heading for problems for years - the question is would Italy have been better or worse off outside of the Euro.

    If Greece does default (and that seems pretty likely), Italy will be even more in the firing line. A Greek default is going to do significant damage to the European economic system - an Italian default would live up to the title of this thread.