9/20/11

It is time to pay the piper

Two Italian consumer groups said they will sue Standard & Poor’s after it lowered the nation’s creditworthiness, the latest challenge to the rating companies amid a mounting public backlash.

S&P cut Italy’s credit rating last night to A from A+, with a negative outlook, on concern that weakening economic growth and a “fragile” government mean that the nation won’t be able to reduce the euro-region’s second-largest debt burden. S&P last downgraded Italy in 2006. (Source: Bloomberg)


Carissimi amici italiani, non si puo' mangiare la torta e allo stesso tempo conservarla per il futuro - come si dice qui in America. Non si puo' spendere se non si produce la ricchezza per ripagare i debiti.

My dear Italian friends, you cannot have your cake and eat it too. You have to produce the wealth to repay the loans.

I know how you think. Like the unions at GM in the past decades. Who cares. Someone will pay the bill. Well, the time has come to pay the bill. And guess what? We do not have the money.

It is time to pay the piper. Everybody.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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