Alby_da_Wolf said:
Yep, probably I didn't understand how central banks work. About rating agencies, I don't want ones dependent on government, but let me be sceptical about the neutrality of S&P, Moody, etc, thanks to their rating, banks were allowed to get rid of the Argentinian bonds they owned suggesting and selling them to their clients when they were already waste paper. About big American banks, it's natural that they do their own interest, but I don't think they are neutral when they choose against which nation they'll launch a destructive speculative attack. About Italy, it's by no means in the same situation of Greece, we are plagued by bureausaurs and politicians that don't want to give up their own privileges and those of the groups and lobbies that bring them votes, but we still have some of the richest and most productive regions in Europe, and most people now are fed up and want to get rid of the rot, and elections would have been a good opportunity, but curiously (suspiciously?) Italy's creditors pushed our president to try to form, after Berlusconi's resignation, a new "technical" government to avoid elections. Also, Germany and France don't want italy to sink, as it's EU 4th economy and they need us, also to gather from us more than 100 of the 700 billion Euros needed for the new fund for stability. Finally, Germany strongly wanted Italy and Spain in the past, and now the new Eastern European members, in the Eurozone, because despite all the horrible flaws in our government's management of economy, our old weak currency emptied our pockets (but Euro does it too), but helped us a lot to compete with them. BTW we are also plagued by strong tax evasion, and right now, starting since gambling was legalized until some tricks were exposed, the state accumulated a 98 billion Euros credit, three times the last financial bill, with authorized gambling companies that cheated on the controls to pay less taxes, but for some reasons the credit's collection doesn't proceed. |
Depends on your definition of nuetral. The major ratings agencies treat all the countries the same but they are cautious when downgraded, waiting too long because they trade soley on their reputation. Any bias or a wrong call would kill them.
So they end up being reactionary.
When they downgrade a country it's because that country is already beggining to collapse economically.
This can be seen by the fact that France STILL hasn't been downgraded, when it really should have...and the countries that HAVE been downgraded should of been downgraded a while ago.
As for having productive areas... you could be making 300,000 a year, but if your ranking up 360,000 a year in debt overtop the 300,000 your making... it doesn't matter.
