European countries learn… No Pay, No Grade: If you don’t pay your bills, your credit grade lowers

The New York Times  02/14/12

“6 European Nations Get Downgrades”

http://www.nytimes.com/2012/02/14/business/global/as-greece-inches-toward-bailout-obstacles-remain.html?pagewanted=all

Moody’s Investors Service cut the debt ratings on Monday of six European countries, including Italy, Spain and Portugal, and became the first big ratings agency to switch Britain’s outlook to negative.

Moody’s downgraded Spain to A3 from A1 with a negative outlook; Italy to A3 from A2 with a negative outlook; and Portugal to Ba3 from Ba2 with a negative outlook. The agency also lowered the ratings for Malta, Slovakia and Slovenia.

Moody’s revised to negative its outlook on Britain, France and Austria, which have the agency’s top Aaa rating.

Euro zone finance ministers are expected to meet Wednesday night and give provisional approval to a 130 billion euro (about $170 billion) bailout, but technical, legal and political problems still plague a rescue that is unpopular in Greece and in its creditor nations.

Common Sense Review

 Good Lord people,  If we don’t make a change this is where we are going to be.  Let’s break it down to the personal level. If I were to spend beyond my means, and did not pay my bills on time, my credit rating would go down. DUH!

So how it is that govt official don’t understand this idea. You cannot spend out of this problem.