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Posts Tagged ‘Portugal’

Portugal is the new Greece

July 6, 2011 Leave a comment

The proverbial dike is buckling:

Moody’s Investors Service on Tuesday became the first rating agency to cut Portugal below investment grade, causing the 10-year Portuguese government bond yield to leap more than 1 percentage point to euro-era highs.

The agency cited worries that administrative problems and slow economic growth might prevent the Portuguese government from hitting ambitious targets to shrink its budget deficit over the next three years under a 78 billion euro international bailout.

But Moody’s also said efforts by the European Union to have private investors bear part of the burden of supporting Greece, through a “voluntary” rollover of maturing Greek debt, threatened investor confidence in Portugal as well.

If investors believe the EU may follow the Greek model and pressure them into bearing part of the cost of future aid to Portugal, they may become less willing to lend to Lisbon, reducing the chance that it can resume borrowing from markets in 2013 as planned, Moody’s said.

Saner heads in Europe are sounding the alarm:

 

Government bureaucrats in centralized Euro-capitals, picking winners and losers in a so-called free market never works.

Waiting for rainbows and unicorns in Europe

May 14, 2010 Leave a comment

Portugal has its share of economic problems, along the lines of Greece and the other Euro-socialist nations who are suddenly realizing that their social utopias are not…(ahem)… realistic.   Jose Socrates is the socialist Prime Minister and has led the country for five years:

The center-left government of Mr. Sócrates, which has had to run the country with the tacit support of the opposition since losing its outright parliamentary majority last September, appears ill-placed to scrap Socialism-inspired rules that have strained the housing market but also help the elderly survive in Western Europe’s poorest country.

After Britain, Portugal also has the region’s most unequal income distribution, with a minimum monthly salary of just €475, compared with €633 next door in Spain.

Income inequality?!  Under a left-of-center government in Europe?  How did that happen?  Isn’t a virtuous leftitst economic system supposed to look out for its lower class?

Since the inauguration of President Obama, I’ve seen so much crap from the left side of the blogosphere with regards to how great things will be once we begin to drag the country towards statism follow the enlightened path of our European brethren, and take a politically liberal approach towards governance.   You know, the whole “well the rest of the industrialized world does (insert leftist entitlement/regulatory program here), why don’t we?

The economic crisis in Europe is highlighting the folly and idiocy of such arguments, and the disastrous results of their debunked economic policies are laid out for the whole world to see.