Italy crashes.

Venezia

So beautiful - and so broken.

Moody’s downgrade of Italy to A2 this week is five notches down from the AAA – and they slapped on a “negative outlook” to go.

Some decades with Berlusconi and corruption has taken a toll. Italy is one of the biggest economies of Europe – and the debt is larger than that of Portugal, Ireland, Greece and Spain combined.

From FP:

Moody’s Oct. 4 decision to downgrade Italy’s sovereign debt to A2 follows a similar decision by Standard & Poor’s on Sept. 19 that knocked the country down to a single A rating; but Moody’s slash of three notches was in some ways more shocking. Both agencies also give Italy a negative outlook, which means that future downgrades are likely. Italy’s high and mighty have reason to worry.

Full story.

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