Chaos in Italy

[OFSO]

Last year two Italian banks, the Veneto Banco and the Banca Popolare de Vicenza were saved from collapse by the Italian support fund buying €2.5 billion of their shares and then pumping in a further €938 million.

Guess what, they are bust again and now request a further €6.4 billion from the EU Commission which looks likely to approve the deal, much to the relief of the Italian 'government'.

Not so good news is that the bailout for another bank, the Monte Paschi dei Siena, is likely to fail as two US private equity giants are pulling out.

Remember, citizens of the EU as you pay your taxes, it's all going to a good cause.

[BackToAllNightLights]

Can't remember the last time a bank here in Canada FAILED!!!...much less...TWICE.......and I'm getting on.
Parker Bros. needs to introduce a new version....Monopoly EU.....it all seems to be just a game over there....and badly played.

[Fox3WheresMyBanana]

Well, the Canadian banks did get Government support during the financial crisis, to the tune of C$114 bn (that's about $200 US ), but the Government called it something else and most people haven't cottoned on. Three of the big 5 were allegedly technically insolvent at one point.
However, since then they have been working to reduce their financial risk, especially derivatives. The impaired loans rate is under half what it was in 2010, at an average 0.71%
More important is the gross impaired loans to available capital, the Texas Ratio (TR) - one's bad debts vs assets to pay them off. Canada's big 5 banks averaged 9.4% at the end of 2016. More than 100% and a bank is basically f#cked. Banco Popolare's TR is currently 217%.

The situation in Italy is so bad that the EU has to pay up - the Italian Government would go bankrupt if it tried.

Furthermore, the Italian situation is only getting worse even with this support. Italy's two biggest banks have TRs over 90% and worsening.

There are a lot of indicators pointing to a deep financial crisis starting in Q3 or Q4 this year. I've read several articles that said the EU is basically trying to hide or delay the worst of it till after the German elections in September. This support action would be consistent with those analyses.

More here.
https://www.policyalternatives.ca/newsr ... nk-bailout
http://www.greatponzi.com/reports/cdn-c ... 16-Q4.html
http://www.zerohedge.com/news/2017-03-3 ... gone-radar

[Fox3WheresMyBanana]

Update: ECB shuts down Veneto Banca and Banca Popolare di Vicenza.
http://www.zerohedge.com/news/2017-06-2 ... iday-night

[BackToAllNightLights]

"Just weeks ago, Italy’s Minister of Economy Pier Carlo Padoan insisted that the two banks would not be wound down. Last year, to dispel the mountain of evidence to the contrary, he insisted that that there would be no need of any future bail outs; and that, furthermore, Italy did not even have a banking problem."

[OFSO]

From the quoted article: A new era has begun in Europe. And it started in Spain.

There's another similarity between Italy and Spain. The Government in Madrid keeps insisted that the banks here are solvent and at no risk. Yet those same ministers (etc) are currently under investigation for illegally shifting billions of euros from banks under their control to the Caymans, Andorra, etc. Draw your own conclusions.

[Magnus]

Off to Italy on Wednesday for hols. Generally chaos, but happy chaos.

[OFSO]

A lovely country but very different according to where you are going. My friends in the north were all working 12 hour days, six days a week. In the south they all went home at lunchtime (and didn't come back). And in Rome - posturing and posing.

Quote from a friend after Bologna train station was blown up by the Red Brigades - "Who would blow up a train station to create alarm and confusion ? You can't get any more alarm and confusion in an Italian train station on any day of the week."

[Fox3WheresMyBanana]

More banking - Government is planning on handing the 17 Billion bill to the taxpayer.
http://www.zerohedge.com/news/2017-06-2 ... -taxpayers

I shall put the popcorn on - this will be worth watching!

[Bob]

This quite a big one, but this process of transferring debt to the taxpayer and profit to Big Banking is now endemic in the west, it is a sort of backwards socialism...Robin Hood in reverse.

[SOPS]

9000 arrived in the last two days, Italy is almost broke, taxpayers bailing out the banks ( again), UN is saying it is against their human rights to send the country shoppers back, yep it's all going really well in Italy.

[Capetonian]

The heel of Italy has become the Achilles' Heel of Europe as the invaders continue to flood in, assisted the by the organisations that should be defending Europe's external borders.

[BackToAllNightLights]

Not just Italy. Spain is seeing renewed traffic from Morocco and Greece seems to be ramping up again.
Until they start returning them to point of departure it will never end.
Trump's visa restrictions go into effect today. Europe?....Who needs a visa? Just float over and disappear.

[SOPS]

And one day, the will realise that Europe is now Africa and what was the Middle East, that there is no more money to pay out to the country shoppers, that the police can no longer control the streets....and ask what the fcuk happened?
And the huggy fluffs will sip a late and say ' well done', just before their house is looted.

[Rwy in Sight]

the huggy fluffs will sip a late and say ' well done', just before their house is looted.

.

Not going to happen, because the huggy fluffs lived in the well off areas that will be protected no matter what.

It seems in a few years a movement to protect white male middle class tax-payers would find a fertile ground. If only the European far right movement refrained from associating itself with the NAZI background and impose a "nationals first" line things would be much different.

[BackToAllNightLights]

It will be far too late then.
If you recognize there is any problem, the sooner you effectively deal with it the better. Otherwise you end up trying to fix larger, far more complex situations and often it is non-recoverable.
I don't see any meaningful corrective actions being taken by the EU even now. In fact, just the opposite.

[OFSO]

They are collecting for the poor in all the supermarkets here - you get a special bag, buy food, pay and hand it to the charity.

Who are the poor ? Well, immigrants.

When I came to live in Spain in order to be allowed to stay I had to submit written proof that I had an income and that I had medical insurance. Obviously no longer.

[Capetonian]

Well, immigrants.

When I came to live in Spain in order to be allowed to stay I had to submit written proof that I had an income and that I had medical insurance. Obviously no longer.

You are an immigrant, as I have been in several countries. We had to prove income, no criminal record, etc. They didn't, therefore they are not immigrants, a lot of them are scrounging invading parasites at best, and terrorists and criminals at worst.

[SOPS]

10000 arrived in the last 2 days. Looks like the Italians might have finally had enough.
http://www.bbc.com/news/world-europe-40437917

[OFSO]

Not to quibble SOPS but my phone news puts the number higher at 12,000 in the last two days. And as usual the other EU Member States have done nothing. Yes, time for Italy to get tough.

The good news is that this only leaves 6,488,000 in Africa waiting to come over....

6,488,001...

6,488,002...

6,488,003...