Investor Fears Spike – Italy and E.U. on “collision course” over Banks?
As we have been discussing even pre-Brexit, Europe’s banking system remains a shambles. In this article from Wolf Richter’s web site, you can read the startling details about how Italian P.M. Renzi faces the Hobson’s choice of either rebelling against the E.U. in order to rescue his country’s insolvent banks. . .or risk letting them go under!
The Judge of all the earth will do right. “The wicked shall be a ransom for the righteous, and the transgressor for the upright.” Proverbs 21:18.
Banks will be nationalized, essentially becoming central bank-run utilities. . .and the central banks themselves (rather than governments) will de facto be presiding over a form of bank-managed social credit. The other alternative is a spectacular deflationary bust; and they don’t want that.
The current metal prices point directly to a deflationary bust if market prices are valid.
Probably right Chris. The banks will get nationalized. So will some private companies in order to “save” them. And so we shall add those assets to the ones that went before until the worlds Central Banks own most of the unwanted bonds, much of the stock market, all the pension liabilities, all the social security obligations, billions of dollars of ETF’s, throw in student loans too while we are at it plus a whole lot of mortgages funds that could never be covered and pretty soon they will have a claim on your wife and kids too while the getting is good!
Does anybody realize that the whole worlds wealth (debt) is being centralized by Central Banks and the majority of people are being slowly but surely disenfranchised out of the system which as we already know is utterly broken?
When that thought first occurred to me I thought it kind of amusing but its actually not funny at all. Things really are THAT bad and they will probably get a whole lot worse before its all over.
Maybe its just a matter of time before major corporations are socialized too and the worlds CB’s via their respective governments control pretty much all assets for management purposes.
This is just too crazy to think about but its happening in Japan already. Why not everywhere else eventually?
Will the citizens allow an end to capitalism and free enterprise, in favor of a centralized economy, which has always in history failed eventually…….how many examples has communism provided, orvVenezuela, Cuba, Argentina And other African and South American countries?
No worries. The Supreme court, being able to change the laws of nature–they changed the laws of biology in sanctifying sexual perversion–will simply change the laws of economics and finance. “Stroke of the pen, law of the land, kinda cool.”
It is clear that low interest rates are killing pensions, banks, and many insurance companies.
The raising of rates, however, will kill the bond market.
Is there a way out of this catch 22?