> One year, the state literally took a chunk of money out of all bank accounts overnight
To be fair, that was 1992 so way before the euro. The problem is that ratings are easy to send down, but very hard to bring back up. Currently they are just two steps above junk, (despite having had pretty low interest until a few days before the current government swore in). Even just a single downgrading would be bad, two would lead to a massive sell and basically a disaster way worse than the Argentinian crisis.
I never mentioned the Euro, the country was on life support well before that. In many ways, the Euro was actually the first step towards a "get out of jail" card. Unfortunately, the second one (Eurobonds) hasn't happened yet.
Yes, I agree. I just wanted to say that the economic situation at the time of the "prelievo forzoso" was very different. I agree with your definition of the Euro as a "get out of jail" card, too.
To be fair, that was 1992 so way before the euro. The problem is that ratings are easy to send down, but very hard to bring back up. Currently they are just two steps above junk, (despite having had pretty low interest until a few days before the current government swore in). Even just a single downgrading would be bad, two would lead to a massive sell and basically a disaster way worse than the Argentinian crisis.