ITALY'S BANKING
Credit: ibtimes
This is a great article and I thought I would like to share it with you.
Credit to ibtimes for the contents on the article.
Credit: ibtimes
These are serious and challenging Global Financial times and to be realistic the problems of 2008 were NEVER SOLVED..!!
Thanks for reading.
Stephen
Great post!
Upvoted and resteemed.
Stephen, very informative post and something we should all be keeping an eye on.
Steem on,
Mike
Thanks Mike. With so much going on on a daily basis sometimes the bigger issues can be swept under the carpet. These are serious and challenging financial times and most are totally unaware how critically things are. Stephen
You are spot on!
It does seem overwhelming sometimes. While gold and silver are taking a break, BitCoin has come alive. I am also watching STEEM, I think I may be able to catch some STEEM below 0.13 USD.
And then there is all the news in addition to financial news.
2017 is going to be another year where everyone needs to stay financially alert.
Steem on,
Mike
You are absolutely right Mike. 2016 has been a pivotable year for the financial market since 2008 and things are not over yet. 2017 is going to be volatile. Stephen
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Too big to fail is a perplexing problem - Lehman was the trigger for the GFC. It would be nice to believe that the world's financial and monetary leaders would have learned from this. And around the world they have. Banks have been cleaned up all over the place EXCEPT in Italy.
Now Italy has had a growth problem. Some will say it came from joining the EURO in 1999. This chart shows that it was a bit of a problem before that. In the 20 years before 1999, GDP growth went over 2% only once.
http://www.tradingeconomics.com/italy/gdp-growth
Now the Italian Government knows that too big to fail is a problem - so they voted to approve a bailout.
http://www.bbc.com/news/business-38391967
This suggests to me they have learned part of the lessons of the GFC. Question is will they learn the next part - fix the banks? Maybe this time they will. The problem is if they do not is Italy could well follow the path of Greece. This is way worse for Europe because Italy is way bigger than Greece in economic terms.
This situation is puzzling ... the majority of expert commentators from the 2008 crisis agree that the bailing out of banks is misguided with the benefit of hindsight. With my, albeit, poor understanding of Italian financial reporting standards. I would not touch an investment here with a barge pole!
The ramifications need to be understood on both sides of the equation.
Thank you for a great post!
I have been saying for 8 years, not 1 cent should have been gifted to the banks in 2008. In essence by gifting so much in 2008 was the end of the free market. There is no free market now. It is totally rigged in favour of the banks. They are in a win win situation. Stephen
I suspect that the risk management in 2008 is that if there were no bail out who or what would fill the void? Our oriental friends would be in there like a rat up a drain pipe. Australia's banking system has much to comment it with far lower levels of leverage permitted and so more robust deposits in the Reserve Bank.
Berkshire Hathaway has had a nice run at Goldmans. I wonder whether he will stay on? Not his style to have too much politics associated with an investment!
Agreed - hence Euro Central Bank getting hot under the collar about cryptocurrencies. I am out of touch with the EBRD, they seem to have gone quiet - their role should be central to this
Shared on twitter. Stephen
Disclaimer: I am just a bot trying to be helpful.
Stephen, be prudent with Italy. Nothing there is what it seems to be. This bank used to be a healthy bank, until a specific political party took the control of it, taking advantage of a loophole. So don't assume its "the market". There is no "market" in Italy, only politics. Since 2000 years, more or less.