In the past, I argued putting Italy in the PIIGS was tenuous mostly because it had recourse since it's the sixth or seventh largest economy in the world with an industrial and manufacturing base that produces among other things, major luxury global brands - unlike the other countries in the PIIGS.
The other thing to consider was the high net savings of Italians.
Here's another reason that further cements this.
From Banca d'Italia via The Financial Times:
At the end of 2009 the gross wealth of Italian households was estimated at €9,448 billion and their
net wealth at €8,600 billion, corresponding to about €350,000 per household.
… Recent studies put Italian households’ share of global net wealth at 5.7 per
cent, larger than the country’s share of world GDP (3 per cent) or population
(1.1 per cent).
By international standards Italian households have relatively little debt.
Household debt is equal to about 78 per cent of disposable income, compared
with 100 per cent in France and Germany and 130 per cent in the United
States and Japan.
It's amazing how little we understand of the Italian economic mind here in North America. It's not like Italy is a mysterious entity.
Italians save money because, and this is just my impression, they don't trust anyone.
Italy is corrupt as hell (like France) and is convoluted in its political existence, but it's problems are not that different than what faces us all in the West. Anglo-American corruption is probably even bigger for all we know.
Where Italy may falter more than others is with its growth prospects.
Thank you, Domenic.
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