The Chiavenna Economic Forum (CEF) —

“Italy is broken,” says Giuseppe Balzeretti, a respected architect here. “It is financially, politically and morally bankrupt. And, in its present state, it is an embarrassment to the great civilizations that have preceded it.”

I am paraphrasing here, leaving out a lot of profanity, shortening it by about 12 paragraphs and unable to capture the sorrowful hand gestures that accompany his argument. Still, his point seems clear.

“OK,” I respond. “But what makes the present situation different from this time last year when you made the exact same statements? Or, for that matter, when you made them in 1992?”

“Well, this year seems a little better.”

Every year when we return to Italy, there is a lovely week when we touch base with people, plant the garden and receive an informal State of the Union address. We are blessed with a fine circle of friends. Besides our esteemed architect, we have a few doctors, a lawyer, a couple of shopkeepers and a pharmacutical representative to help us keep our finger on the national pulse.

It seems to me that the sky has been falling here in Italy ever since I arrived here 25 years ago. I don’t think that I have ever heard an affectionate comment about the national government. As we heard above, it’s been “bankrupt” for quite a while. So, it always surprises me that I have these doomsday conversations surrounded by laughing friends, fine food and the sound of the fountain in the piazza. If the world’s going to end, this is where you’ll want to wait it out.

Back in the States, the news has kept us on a pretty steady diet of home foreclosures, massive layoffs, bank bailouts and securities fraud. In comparison, the 2009 Italian financial crises seems like a paradise. Italian banks are incredibly stingy to the little guy. They would NEVER finance 110% of a mortgage (try 50% or 60%). Up until 10 years ago, they wouldn’t even give you a car loan or much of a line on your credit card. Hence, most people here don’t own large houses, three cars, a boat and a home theater. They may even still live with their parents. What they do have is enough money for nice clothes, good food and a couple of vacations a year.

It seems pretty sane to me.