Bank Run

Italy's Insolvent Monte Paschi To Issue €15 Billion In Debt

Italy's Banca Monte dei Paschi di Siena (BMPS.MI), which is being bailed out by the state, plans to issue 15 billion euros ($15.8 billion) of debt next year to restore liquidity and boost investor confidence, several newspapers said on Friday.

Central Bankers Are Losing Faith In Their Own Alchemy

"The idea that paper money could replace intrinsically valuable gold and precious metals... was both revolutionary and immensely seductive. It was in fact financial alchemy - the creation of extraordinary financial powers that defy reality and common sense. Pursuit of this monetary elixir has brought a series of economic disasters - from hyperinflation to banking collapses."

Italy Slams ECB For Revealing It Has A "Bank Run" Problem

"It would have been useful, if not kind, to have a bit more information from the ECB about the criteria that led to this assessment," Italy's economy minister Pier Carlo Padoan told Il Sole 24 Ore, as he slammed the ECB. "I was a bit surprised to receive the news, out of the blue and on Christmas day."

Dave Collum's 2016 Year In Review - "And Then Things Got Really Weird..."

"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."

It's Official: Italy Will Nationalize Monte Paschi

So far, so expected. After earlier announcing the failure to attract any anchor investors for a private capital raise, Monte Paschi has announced that it will officially ask the Italian government for a "precuationary capital increase" - in other words a bailout. The funds will come from the newly decreed EUR20 billion bailout fund, and as Bloomberg reports will not trigger a "bail-in."

Cashless Society - Is The War On Cash Set To Benefit Gold?

If governments allow banks to shut down bank accounts of individuals or companies without a fair trial and due legal process, it will create a very dangerous situation indeed. In this environment, buying gold is rational behaviour to even the biggest paper-bugs out there. The current monetary experiment of massive QE is no longer the main concern of prudent investors and institutions, it is now combined with negative interest rates and bail-ins.

China Injects Economy With A Quarter Trillion In Debt In One Month, But The Full Story Is Much Scarier

"From a growth rate perspective, the speed of credit expansion is alarming. The current pace of credit growth in China is realistically in a range between 19% and 20%, well above the reported official TSF growth of 12.4% and new loan growth of 13.0% in September. Relative to GDP, China’s credit-to-GDP ratio currently in a range from 260% to 275% of GDP as of September 2016" - Barclays