Tro23 Oct 2018 19:22
You were talking about the Italian banks the other day.........
The Italian banks hold lots of Italian government debt that is in danger of devaluation, or default. The Italian government relies on the banks to lend it money to carry on. The Italian banks and treasury are like two drunken giants propping each other up, inextricably linked by mutual weakness. When the crisis hits, they will go down together.
The Italian government now wants to borrow more than European guidelines permit, and more than the European authorities feel comfortable with. "None of your business," say the Italians, who increasingly loudly resent the interference of the EU Commission and the European Central Bank. "Oh yes it is," say the EU officials, pointing out that the Italians have solemn commitments to honour to ensure the viability of the euro long term.