Italy whose-debt-to-GDP ratio is second only to Greece in the euro zone at 120 percent, was among a raft of European countries hit by a mass downgrade from Standard & Poor’s on Friday, with its sovereign rating cut by two notches to BBB+. MSNBC conducted a poll amoungst Italians regarding the Euro and found that

Fifty-five percent of Italians have lost confidence in the euro single currency and nearly a third think it would be better to return to the lira, an opinion poll showed on Monday.

Well, I don’t know whats its like in Italy, but in Ireland when it was introduced, people immediately noticed prices increase dramatically. From day one traders took advantage in the confusion and hiked up prices. Since then we cheap interest rates, the country went on a credit binge. With no power of the Irish Central Bank to control rates, the country lived on cheap credit which caused a massive bubble. Hence the trouble the country is in now.

 

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