Author Topic: Italy to be the first domino?  (Read 1252 times)

Offline Ellipses

  • Hero Member
  • *****
  • Join Date: Mar 2013
  • Posts: 706
  • Country: gb
  • Karma: +54/-0
  • 'Layman' economist
    • View Profile
Italy to be the first domino?
« on: April 11, 2016, 05:36:26 AM »
Italy is, it seems, facing a $6bn bailout for its banking system. 

Bank shares have lost almost half their value since January as the sector grapples with over $400 bn of bad loans.  The issue seems to have been somewhat under reported, but the country's third largest bank alone has seen an 81% reduction in its share price in only the last twelve months.

The bailout is to be funded by the country's finance industry as a whole and is seen as being something of a 'last resort' with a view to avoiding a total collapse.

Against this, the Italian government is struggling with a public debt burden of 132.5% and are not really in any position to help.

Watch this space.
« Last Edit: April 11, 2016, 05:38:45 AM by Ellipses »



FloydPink

  • Guest
Re: Italy to be the first domino?
« Reply #1 on: April 12, 2016, 02:40:46 PM »
A bailout is much like a parachute, with or without it you are going down.

Offline Ellipses

  • Hero Member
  • *****
  • Join Date: Mar 2013
  • Posts: 706
  • Country: gb
  • Karma: +54/-0
  • 'Layman' economist
    • View Profile
Re: Italy to be the first domino?
« Reply #2 on: April 15, 2016, 06:46:51 AM »
Love the logic Floyd!  8)

My hunch is that the 'finance industry' concerned here are the 'red shields' ... keeping those plates a spinnin.