Fourth largest economy in Europe falters

We have all been aware of the problems of Greece, Spain, Ireland and Portugal; but how did Italy pop into the picture?   It is the fourth largest economy in Europe and has among the highest standard of living in the world.   Yet the telltale signs of a potential financial crisis have been in place for a number of years. Presently Italy has a debt to GDP ratio of 120%, the highest in Europe.  However, the country has been able to handle such a high debt as its economy was relatively stable and so were revenues to the government.  That is until 2009.  At that point the government began to run high budget deficits and unemployment sky-rocketed. In a recent article in the American Thinker Steve McCann proposed a new economic index which he referred to as the Insolvency Index as an indicator of a nations potential default status: When high [budget] deficits are coupled with a dramatic increase in unemployment for more than two or three years in a row,...(Read Full Post)