Herewith I offer a fundamental law about fundamentals:
If a government feels a need to proclaim that its economic fundamentals are strong, they are not.
FLOYD NORRIS
Notions on high and low finance.
As you may recall, we heard a lot about fundamentals when the American economy was sliding into recession in 2007 and early 2008. But the immediate impetus for formulating the law comes from Rachel Donadio’s article on Wednesday:
ROME — As markets continued to hammer Italy, Prime Minister Silvio Berlusconi on Wednesday rebutted calls for his resignation, saying Italy’s economic fundamentals were strong and pledging that his government was “up to the task” of fostering economic growth.
Mr. Berlusconi went on to declare: “Our economy is healthy. The country is economically and financially solid.”
Article source: http://feeds.nytimes.com/click.phdo?i=e86cc2a21e8d1b5d699df97d691ebf14
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