Which country doesn't have a downgraded credit rating? Also who is doing this "credit rating"? Standard & Poor's? The same crooks who fluffed up the ratings of fraudulent MBS & CDOs a few years ago helping to setup the housing crisis in the first place?
But no, let's further deregulate & offshore jobs to countries that have poor humane rights records so our corporate overlords can get ever richer.
A mystifying comment. Because today's banks are loaded up with sleazy bad actors, there's no such thing as compounding interest? Because S&P sold its reputation for a few deals, there's no such thing as creditworthiness?
S&P, Fitch & Moodys didn't just sell their reputation for a "few deals". Pretty much every MBS or CDO was rated highly by these companies. Trillions of dollars worth. A large part of this is due to the fact that they are paid by the "bad actors" inside the investment firms & banks that they're suppose to be "independently" rating. If we banned that form of relationship that would be "regulation" which is "bad".
So, here we are with these same companies in charge of sovereign credit ratings. The same companies that played a large part in creating a credit crisis are the companies that get to set creditworthiness. Magnificent system we have.
So in order to make these credit rating agencies happy, we must deregulate further, lower taxes further, turn into a service level economy & freeze or depress wages so we can hope for short-term gains in our economy. Which makes corporations happy, banks happy & market makers happy thus our creditworthiness goes higher. It seems rather biased for those who are on top & those who caused the calamity in the first place. Once the economy stabilizes those smart rich people on top can start making imaginary investments with their friends until they create another crisis. Rinse & repeat. Look where prosperity has come from over the last 15 years. Bubbles & scams.
Does this look sustainable? Who really benefits from this?
Do you believe that an international banking conspiracy is deceiving us about Italy's debt standing at over 120% of GDP?
Do you believe that Italy's debt is that high because Italy overleveraged itself on mortgage-backed securities?
Did you read the other comments on this thread, where Italy's central bank director complained about Italian wage stagnation and its two-tiered employment system, and its poor tax revenues?
No they are not necessarily deceiving us on the outstanding debt in Italy. But they certainly weren't sounding the sovereign credit alarm or MBS/CDOs alarm when the money was rolling in, even though they had direct access to data & probably knew what was coming down the line. 120% of GDP is concerning but not end of the world. The USA has a higher ratio. Italy's credit rating has actually been lower before. If we were extremely concerned about GDP/debt ratio & credit ratings then perhaps we should all adopt a model like China.
Italy didn't get to where it's at entirely because of MBSs but the crisis certainly didn't help any country's financial situation & many countries had to shore up banks & took a credit hit.
There are definitely some issues with how Italy operates. Having a philandering-media-monopoly-owning-billionaire tyrant in charge certainly doesn't help.
While changes probably need to be made, the fact is that changes always need to be made. Radically switching to a pro-corporate/anti-worker strategy because shady rating agencies might downgrade you a point is silly.
But no, let's further deregulate & offshore jobs to countries that have poor humane rights records so our corporate overlords can get ever richer.