When you get into too much debt, eventually really bad things start to happen. This is a very painful lesson that southern Europe is learning right now, and it is a lesson that the United States will soon learn as well. It simply is not possible to live way beyond your means forever. You can do it for a while though, and politicians in the U.S. and in Europe [...]
Merkel Advisor Feld: “Euro Crisis Will Return Shortly And With A Vengeance”
The Italian economy would not find their way out of the recession, according to the pessimistic assessment by Lars Feld: “The sustainability of Italian public finances is in jeopardy. The euro crisis will therefore return shortly with a vengeance.”
Apparently, the Italians were not ready to move on the path of reform that has been taken by Mr. Mario Monti, [...]
Italian Prime Minister Mario Monti said he is not expecting Italy to access the European Central Bank’s new bond-buying program anytime soon in an exclusive interview on CNBC’s “Closing Bell.”
The Italian leader, who was greeted warmly by supporters at the Ambrosetti forum in Lake Como, Italy, said he plans to keep Italy on track to return to economic growth sometime in 2013.
Monti, whose term expires in April 2013, said he [...]
Italian GDP contracted for the last 12 months and the country is now looking at a longer and deeper recession than was previously expected.
With Spain already expected to request a sovereign bailout, investors are worried that the giant Italian economy might be the next domino to fall. So the big question on everyone’s mind: Is Italian debt sustainable? i.e. can Italy meet its debt without debt relief and avoid default.
German politicians have reacted furiously to this front page in the Italian daily Il Giornale with its headline “Fourth Reich” above a picture of Chancellor Angela Merkel raising her hand in a vaguely fascist salute.
The paper is owned by the brother of Italy’s former prime minister, Silvio Berlusconi, and the article – published on Friday – was written by its editor-in-chief, Alessandro Sallusti.
It says: “Since yesterday, Italy is no longer in Europe, [...]
After Spain, it’s Italy’s turn in the Eurocrisis spotlight. The immediate cause for this spotlight is a two notch downgrade of the Italian sovereign by Moody’s, a rating agency from A3 to Baa2, just two notches above the dreaded junk status. Despite the downgrade, Italy is not Spain and the fact that the downgrade had a rather limited impact on the pricing of Italian bonds issued in its immediate aftermath reflects some [...]
Italy must make more progress with its financial reforms to avoid being targeted by traders looking for the “next in line” for an international rescue after Spain’s request for help.
Economists and analysts warned that Italy could face a turbulent few days amid concerns about contagion from Spain.
Daniel Gros, head of the Centre for European Policy Studies in Brussels, said: “After Spain, there will not be the margins to help Italy. [...]
#1 Moody’s has announced that it has downgraded the credit ratings of 16 Spanish banks. Included was Banco Santander, the largest bank in the eurozone.
#2 Shares of the fourth largest bank in Spain, Bankia, dropped 14 percent on Thursday.
#3 Overall, shares of Bankia have declined by 61 percent since last July.
#4 Shares of the largest bank in Italy, Unicredit, dropped by about 6 percent on Thursday.
#5 According to CNBC, a Spanish bond auction on Thursday went very poorly….
The Spanish Treasury had to [...]
Maybe we can call today bad loan day: earlier today the Bank of Spain announced that Spanish bank loans, already rising in a rather disturbing diagonal fashion, have surpassed 8% of total for the first time since 1994. Now it is Italy’s turn, where we find courtesy of ABI, that gross non-performing loans, aka bad-debt, has just reached €107.6 billion, or 6.3% of total, and the highest since 2000, not to mention a [...]
Whoever says there are no winners in the European banking crisis apparently has never woken up with a horse’s head in their bed. According to a new report by Italian anti-crime group SOS Impresa, as reported by Reuters, “Organised crime has tightened its grip on the Italian economy during the economic crisis, making the Mafia the country’s biggest “bank” and squeezing the life out of thousands of small firms, according to [...]
by Bob Chapman, theinternationalforecaster.com
Financial Troubles For Many Nations In The New Year
2012 is going to be quite a year with falling economies in the UK, Europe, the US, China, Japan and the remainder of Asia. Latin America, and Mexico by comparison should fare fairly well overall. England is in a death spiral. Europe is next, the US is not far behind and China and Japan will soon join the disjoined group. We [...]
By Barbara Kollmeyer
MADRID (MarketWatch) — European finance ministers meeting on Tuesday evening were told Italy is at risk of insolvency, with a potential devastating impact on the euro and big economies of Germany and Spain, according to a confidential report obtained by the Guardian newspaper. The report from the European Commission and the European Central Bank said Italian Prime Minister Mario Monti would need [...]
by Phoenix Capital Research
The markets exploded higher late in the day yesterday on yet another rumor that China will save Europe. We’ve seen this rumor several times already and until the “unidentified sources” are named, we’ll stick to the reality which is what Italian Finance Minister stated: Italian Economy Minister Giulio Tremonti said on Thursday that Asian investors are reluctant to buy Italian bonds [...]
By: Patrick Allen
CNBC EMEA Head of News
Deutsche Bank’s CEO on the outlook for banks.
The DAX [.GDAXI 5255.32 -283.01 (-5.11%) ] led the losers, falling by over 5 percent, while stocks in London and Paris also fell sharply.
The biggest loser in Germany is Deutsche Bank [DB 36.27 -2.33 (-6.04%) ] after CEO Joseph Ackermann told a banking conference that the euro zone debt crisis could [...]
Dow Jones just hitting the tape referencing Spiegel
German Govt: Italy Too Big For EFSF To Save – Spiegel
German Govt: Doubts Whether Tripling EFSF Would Help It Save Italy
German Govt: Italy Must Make Savings, Reforms To Exit Crisis – Spiegel
Italy Debt Guarantee Could Raise Doubts Over Germany’s Finances – Spiegel
German Govt: EFSF Should Only Help Small, Mid-Size Countries – Spiegel
As a reminder, yesterday’s stopgap announcement by the ECB to [...]