Friday, February 04, 2011

Tunisian Leasons for Australian States

From Joe Stiglitz:

"Nor is it enough to follow the dictates of international financial markets – that may get good bond ratings and please international investors, but it does not mean that jobs are being created or that standards of living are being increased for most citizens. Indeed, the fallibility of the bond markets and rating agencies was evident in the run up to the 2008 crisis. That they now looked with disfavor at Tunisia’s move from authoritarianism to democracy does not redound to their credit – and should never be forgotten."

AAA credit ratings do not guarantee that peoples' standards of living are improving- or that governments will be re-elected. People are happy when they have jobs and the trains run on time- forget this at your own peril.


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