Italy’s real problem?
Italy got Downgraded yesterday. The two main factors for the downgrade according to S&P are the political and the fiscal issues Italy is facing. Yes, we all know Berlusconi is screwing the whole nation, and that the fiscal situation is quite alarming given the debt Italy is running. There is one chart though, that doesn’t receive much attention. Demographics in the Med area is rather disturbing. Both Italy and Spain will face some big burdens going forward, if they don’t deal with this issue in time. Who’s gonna pay for the ageing population?