Rare Good News from Europe
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  • Corlyss

    “Italians can see a way forward that isn’t contingent on reluctant aid from elsewhere in Europe.”

    Perhaps. But they can’t get there from here because of the same social problems that plague Greece. Nobody pays taxes; the pols are equally corrupt; massive off the books markets; sclerotic labor markets comprised of people who all have a relative working for the state as if it were a birthright; intractable unions; and no underlying sense that things gotta change. Good luck with a combination like that.

  • thibaud

    It isn’t news to anyone who actually knows something about Europe.

    Italy’s public debt has always been manageable; its budget is in surplus and its households are very wealthy.

    On top of which, when you combine public and private debt, Italy’s total – about 260 percent of GDP – is far below the American total debt level of 350% of GDP. The Swiss, Dutch and nordics are even lower – far lower – than Italy.

    It’s America that for the last three decades has been running a bread-and-circus, liquidity-fueled economic model that masked fundamental weaknesses with artificially cheap consumer credit. Not Italy or the frugal northerners.

  • Angel Martin

    wishful thinking on the part of the EU:

    CDS spreads for the two counties are similar: http://www.bloomberg.com/quote/CSPA1U5:IND http://www.bloomberg.com/quote/CITLY1U5:IND

    as are CDS spreads for their largest banks bankshttp://www.bloomberg.com/quote/CBSH1E5:IND
    http://online.wsj.com/article/BT-CO-20120518-702640.html

    http://www.bloomberg.com/quote/CUNI1E5:IND
    http://www.bloomberg.com/quote/CSAN1E5:IND

    about all you can say for Italy is they didn’t have a real estate bubble like spain

    markets have given their verdicts on these countries, and that verdict is “sell”

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