ECB ready if Italian referendum is against Govt

[Y_Participant 4591]

Italian PM Renzi has said he will resign if Italians reject reforms, which would abolish the elected upper house Senate and take back some key decision-making powers from the regions.

(This is another power-grab heralding a Police State).

His departure would bolster the anti-establishment 5-Star Movement, which has called for a referendum on EU membership.

The health of Italian banks may be Rome’s biggest worry in the aftermath of a ‘No’ vote

Sources say there is little the ECB can do about Italian banks’ need for capital unless Italy itself asks for a rescue programme for its banking sector.

This would require private investors in banks to lose their money in a so-called bail-in before European public funding can be used.

This means if investors flee short-positions in Italian banks – there is a BAIL-IN likely coming!

If Italy goes then French banks are in deep trouble.

Italian referandum this Sunday 4th December 2016.

http://www.reuters.com/article/us-italy-referendum-ecb-idUSKBN13O1FS

[PistolPeteParticipant 27143]

Excellent analysis. I’m figuring that the coupling of a falling bond market (in terms of returns not rates) + negative interest rates + bail-ins will do two things.

Suck the last bit of capital from everyone possible, AND possibly result in mass upheaval and revolution.

[Biggvs_DickvsParticipant 3725]

PistolPete wrote:

two things.

Suck the last bit of capital from everyone possible, AND possibly result in mass upheaval and revolution.

Depends on how they do it, and who’s money goes poof. Iceland let their banks fail and came out in great shape apparently.

That’s what we should have done here in 2008. Let the banks fail and use the “bailout” funds to make DEPOSITORS whole again, so they can take their money to stable banks that didn’t act like complete dumbasses – you know free market, etc etc.

"Data, I would be delighted to offer any advice I can on understanding women. When I have some, I'll let you know." --Captain Picard,

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