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| Re: Boehner walks away, gives up on debt negotiations with Obama (814692) | |||
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Re: Boehner walks away, gives up on debt negotiations with Obama |
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Posted by SMAZ on Sat Jul 23 03:57:38 2011, in response to Re: Boehner walks away, gives up on debt negotiations with Obama, posted by AEM-7AC #901 on Sat Jul 23 03:21:33 2011. Mind you, Ireland is technically solvent, and had it pulled an Iceland, it may have escaped like Iceland did*.Ireland would have had to probably come off the euro to pull an Iceland. Spain is spooky because of the fact that nearly a two-tenths of the population is out of work, I agree that Spain is spooky. That would be a real cataclysm if they are unable to pay. Their banks are also very weak. Their unemployment rate is not much different than ours. Ours is 16.2% when measured by the same standards. Italy have had anemic growth which leads some to wonder if there's any room for them to pay their debts in the future given future entitlements. There is plenty of room for cuts. They just raised their retirement age to almost 70 and pegged it with life expectancy and pared back the maximum pensions which can run into the 100s of thousands of euros per year for the rich. One can still retire at 62 if they payed 40 full years of SS contributions of a certain amount. They've got an old population and a sclerotic political system. The bill is due. That's their biggest obstacle to growth. They are Europe's Japan. As for future cuts, their universal health care and assisted home care system has always been largely spared. It's their crown jewel and in an otherwise dysfunctional country it is truly a masterpiece they they take care of. I think the Italian government may be underestimating how much the recent cuts will eat into future growth. Either way, they don't really have a current deficit problem. They have a past debts problem. Your example of Greece and Sicily is what I always tell Italian Southerners when they bring up the North or the euro. Greece is a basket case. They did an Enron. Unforgivable. once people would actually have to pay out on the various CDSes out there... As for the CDS, the money is simply not there. Never was. It's all a bunch of AIGs out there. It's a joke. You seem to have a decent understanding of this stuff. Join the USAF or USAFR or ANG and become a finance specialist. Then get out and go work on Wall Street or for the SEC or the Fed. |
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