How Big is Italy’s Problem?

How Big isItaly’s Problem?


$650 billion euros would get them by “for a few years.” That’s $877 billion dollars.

Italyhas 60 million people. (A proportional bailout for theUSwould be $4.4 trillion.)

$14,616 per person, $58,500 per “family” would solveItaly’s problem for a few years, meaning politicians would not have to lay off any government workers, freeze pay and benefits, redesign public worker pensions, or reduce social benefits to levels of a few years ago.



They have 82 million people.

Each “family” could send $42,780 toItaly’s public unions and welfare beneficiaries.

No wonderGermanydesists.

They have not the money either.




“Politicians [ inEurope] don’t want to tackle the hard and dangerous work- witness the unionized public workers taking to the streets to protect their sinecures- of budget control.” (George Melloan, WSJ Nov. 30, 2011, A Political Solution for the Euro?)


2 Responses

  1. What is really concerning about this is how interconnected everything is. In the past a situation like this would cause an inflational situation like South America had in several countries a few years ago and it would be limited to a single economy. With the Euro Zone and a singular currency added to the new interconnected nature of the global economy, if Italy falls we all feel it.

    I took a financing the corporation class and the message was if you are purchasing a large asset (like an airline or other business) then it is ok to finance the investment with bonds and just keep rolling them over. The US debt is $15T or about $48,000 per citizen and we seem to be ok with rolling it on down the line as though it were tied to assets as opposed to just money that we have spent that we do not have. Our country brings in about $2.3T in tax revenue meaning that it would take us over 7 years to pay off the national debt if we were to shut down every single function of government and just pay off what we owe.

    The scary thing is no one knows how many dominoes have to fall before we all find out just how far in the hole this whole global economy is.

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