Italy

Monte Paschi Crashes To All Time Low, Rebounds After Government Agrees To Fund Bank Bailouts

In early European trading, shares of Italy's Monte Paschi halted after crashing 17%, dropping to fresh all time lows, after the bank warned its liquidity could run out far sooner than expected. But then, moments ago, its shares soared, recovering all losses when Italy's upper house of parliament approved a government request to borrow up to €20 billion to underwrite the country's troubled banks.

Brace Yourself For Italy's Bankruptcy

"The diagnosis is simply that Italy has become woefully uncompetitive, and as a result, is not solvent. This much is clear from the perilous state of its banking system, which is always the outcome when banks lend to firms that have been rendered uncompetitive by some reckless central banker..., This has to be the most well-telegraphed, and now inevitable, national bankruptcy that I have seen in my 45-year career."

S&P Futures Rise Propelled By Stronger Dollar; Europe At 1 Year High As Yen, Bonds Drop

It appears nothing can stop the upward moment of equities heading into the year end, and as US traders walk in, S&P futures are again higher, proppeled by European stocks which climbed to their highest in almost a year, while the USD rose and bonds and gold fell, failing again to respond to terrorist attacks in Ankara, Berlin and Zurich. The yen tumbled after the BOJ maintained its stimulus plan.

Morgan Stanley Reflects On The Lessons From 2016

"The biggest surprises in 2016 were clearly political – notably Brexit and the US presidential election. As a result, we will be keeping a close eye on political developments in 2017, notably in Europe, where not just Germany, France and Italy are heading to the polls in 2017, but also the Netherlands and possibly also Greece."

Will A Stronger Dollar Cause A Trade War With Europe?

Everyone and their dog in the marketplace realizes that an EMU (European Monetary Union) debt crisis before the German elections next Autumn could sink Chancellor Merkel. There is a deeper problem here. It is becoming clear that even beyond Europe’s election season, “monetary normalization” may well not be feasible.

Two Options: Reform The Economic System Now Or The Populists Will

This is what it comes down to: There was a credit explosion to the benefit of banks and the wealthy once Nixon closed the gold window. At that point, governments could print at will, and they did. Central bank policy cannot fix structural problems, only the free market can. And that includes a truly free market in money as well.

Damaging The Deep State: Trump, Russia, And China

It has become clear Trump's attitude towards Russia and China is very different from that of his predecessors. Amazingly, he is already wresting power from the deep state, causing it great resentment, which under Obama, Clinton and the Bushes, ran geopolitical policy. From January, barring accidents the world will not be the same, the establishment up-ended.