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The Italian Banking System could very well be the straw that breaks the camel’s back. Thank you Endress

Big Al
December 20, 2016

Will the Italian government bail out the country’s troubled banking system or will the ECU regulations prevail?

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Discussion
15 Comments
    Dec 20, 2016 20:57 AM

    Thanks Al, for you and your team to answer my question. And more, this threat on Berlin could be very related to diverge attention for this possible crisis about Monte dei Paschi fiasco.

    Dec 20, 2016 20:01 AM

    Below is a very good video with the UK’s Jim Mellon, from a few weeks back now, where he talks about the forthcoming collapse of the Italian banks.

    Suggests that Italy will be the first to leave the Euro.

    https://www.youtube.com/watch?v=PNoWOJ_btuM

    Jim Mellon is one of the UK’s most successful investors. He does not say much so when he says something, such as this, it is well worth listening to.

      Dec 20, 2016 20:29 PM

      Bob UK,

      I watched the entire conversation and found Mellon to be very interesting. I have to wonder just what is his time frame on gold?

        Dec 20, 2016 20:18 PM

        Right at the end of the interview he talks about gold and silver perhaps going down for a bit longer but then that would be it.

        He did that interview the last week of November so I am just following his general view that precous metals will do well in 2017 and that conventional stocks will do not – he thinks that the likes of Facebook, Amazon, etc, are going to be some of the biggest shorts going.

    Dec 20, 2016 20:05 AM

    Qatar are probably looking to do the same as they did with Barclays in 2008. Bought a huge chunk to bail out Barclays and then they sold out over the next 3 or so years for a very handsome profit?

      Dec 20, 2016 20:31 PM

      Pretty good point, Bob UK. The question in my mind is :Profit for investing in and then selling Italian basket cases? Sorry I should have used the term “banks”!

        Dec 20, 2016 20:21 PM

        The thing is Al is that when they pump so much money in it then lures others in to invest in those companies.

        That is what happened with Barclays. The Qataris bailed it out around 50p per share IIRC, others then jumped on board and the share price rose, over the next few years, to £3 or £4 IIRC. By which time the Qataris had been selling out all the way up.

        I imagine they think they can repeat this with an Italian bank.

    CFS
    Dec 20, 2016 20:23 AM

    Gary Savage on the US monetary bubbles:

    https://youtu.be/gZFM7bm0dBs

    CFS
    Dec 20, 2016 20:31 AM

    But this is just the tip of the iceberg.

    The derivative problem is much worse.
    The tangle of all banking relationships in Europe probably means if any one major bank collapses the whole system collapses; not just the Euro, but the whole system.

      Dec 20, 2016 20:53 AM

      Yes, that is what Jim Mellon has been suggesting IIRC.

      Dec 20, 2016 20:34 PM

      Remember my earlier comment about, “the second biggest potential event of 2016 behind the U.S. election. I am now realizing that it probably will be the biggest. Let’s see how the governments; the investors and the general public handle this very fragile situation.

      Dec 20, 2016 20:32 PM

      Possible, may be over a period of time, but not probable.

    Dec 20, 2016 20:09 PM

    A culture of corruption,political kickbacks and other forms of fraud. http://wolfstreet.com/2016/12/18/lest-we-forget-italys-blossoming-banking-crisis-is-also-a-huge-crime-scene/

    Dec 21, 2016 21:13 AM

    Not just banking relationships in Europe CFS, but the world over. Globalisation has rendered the financial world totally reliant on one another.

    I agree with the derivative topic though. That is one overgrown monstrosity of a sh*t fight.

    Dec 21, 2016 21:23 AM

    Anyone who likes to look at stats illustrated with picture comparisons needs to check demonocracy.info. Its abit dated but an interesting look nonetheless. Specifically, look at the derivatives link. I think this is dated back to 2012 and is sourced via zerohedge. Those overall figures have had an extra 4 years to grow…