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Sicily Is Greece As Italy Provides EUR400 Million 'Risk-Free' Bailout/Loan

Tyler Durden's picture





 

Italian premier Mario Monti is mulling emergency action to take direct control of Sicily’s regional government before the island spirals into a full-blown financial crisis, fearing contagion to the rest of Italy. We thought it was coming (as we wrote yesterday); we heard the rumors; but now the 'temporary liquidity problem' that faced Sicily has been resolved by... yes, you guessed it - the transfer of EUR400 million from the Italian government. Do not worry though. As one official noted "there's no default risk for Sicily, whose budget was in surplus in 2010 and 2011". Unbelievable.

 

As Bloomberg notes:

"The developments in Sicily are very serious," said Prof Giuseppe Ragusa from Luiss University in Rome. "It is just the sort of negative shock we don’t want right now. Everything has to go perfectly for Italy to pull through."

 

"We mustn't let the disaster in Sicily infect Italy"

 

"We are victims of disinformation, lie, and falsehoods. What are we supposed to do? Cut even further? Detonate a social explosion in Sicily? Turn Sicily into a land of desperation where everything is destroyed," Sicily's governor Lombardi said.

 

"Sicily is not at risk of default," said Mr Lombardo, blaming the crisis on cuts by Rome itself under its EU-imposed austerity regime. "We face a liquidity crisis linked to the recession in the rest of the country. It is hard for lots of regions, and not just Sicily."

 

 


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Wed, 07/18/2012 - 15:53 | Link to Comment Pladizow
Pladizow's picture

Aaaaa shut upa ya face!

Wed, 07/18/2012 - 16:08 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Somewhere Webster Grifin Tarpley is smiling....and eating a Big Mac.

Wed, 07/18/2012 - 16:11 | Link to Comment knukles
knukles's picture

Was that 2010/11 budget surplus before or after the howevermany million/billion bailout?

Wed, 07/18/2012 - 19:46 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

So one day in the Italian parliament walk in a few burly guys (6 feet no matter how you measure them) with bulges out of their suits to.... well....... suggest that the Italian gov't bail them out.

Wed, 07/18/2012 - 15:54 | Link to Comment Gromit
Gromit's picture

Suggest you change headline to million not billion.

Wed, 07/18/2012 - 15:57 | Link to Comment Agent P
Agent P's picture

About shit myself when I read it.

Wed, 07/18/2012 - 16:06 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

This looks like a financial Sicilian necktie.

Wed, 07/18/2012 - 15:55 | Link to Comment q99x2
q99x2's picture

Monti buys himself an island with the money that the taxpayers of Italy do not have.

Great.

Wed, 07/18/2012 - 16:04 | Link to Comment Frastric
Frastric's picture

More like a broke country bails out a broke province with money it doesn't have. Smells of Ponzi to me...

Wed, 07/18/2012 - 16:08 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Don Corleone must've called an emergency meeting of all the families.

Wed, 07/18/2012 - 16:41 | Link to Comment ATM
ATM's picture

I am sure my cousins were there. They ain't stupid. They know that the threat of taking the rest of the world down has worked fantastically for the banks, the dirty Greeks and the Spanish. Those cunning little Sicilians know a thig or two about getting a little blood out of a turnip.

Thu, 07/19/2012 - 00:39 | Link to Comment tom a taxpayer
tom a taxpayer's picture

When have I ever refused any of you an accommodation?

Wed, 07/18/2012 - 16:19 | Link to Comment Al Huxley
Al Huxley's picture

No, no, no.  If you get enough parties and counterparties involved in the chain, and if you have enough 3 and 4 letter acronyms, and then throw in some earnest statements by politicians and central bankers about 'tackling the issues' and 'making real progress' then it's no longer a ponzi.

Wed, 07/18/2012 - 15:56 | Link to Comment Hopium Dealer
Hopium Dealer's picture

The mafia needed a bailout.

Wed, 07/18/2012 - 15:57 | Link to Comment tmosley
tmosley's picture

They've got 4 Dr. Evils living there?

Wed, 07/18/2012 - 15:57 | Link to Comment The Reich
The Reich's picture

Heligoland is having a 'temporary liquidity problem', too.

 

Please send another EUR400 billion 'Risk-Free' Bailout/Loan

Wed, 07/18/2012 - 16:00 | Link to Comment Dr. Engali
Dr. Engali's picture

It sounds like Bagdad Bob holding a press conference.

By  the way the headline reads " billion".....like it makes a difference anyway.

Wed, 07/18/2012 - 15:59 | Link to Comment PontifexMaximus
PontifexMaximus's picture

Omertà!

Wed, 07/18/2012 - 15:59 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

The number of displaced workers has risen dramatically since the start of the Great Recession, and this year a third of them had to raid retirement savings to make ends meet.

Making matters worse, many who have lost their jobs have defaulted on 401(k) loans, causing taxes and penalties to further deplete their retirement savings.

 

http://www.usatoday.com/money/perfi/retirement/story/2012-07-18/401k-ret...

Wed, 07/18/2012 - 15:59 | Link to Comment MillionDollarBogus_
MillionDollarBogus_'s picture

Tyler = Matt Drudge..........

Get the number right.......

Wed, 07/18/2012 - 16:00 | Link to Comment nobusiness
nobusiness's picture

Finally!  This must mark the bottom of the crisis

Wed, 07/18/2012 - 16:08 | Link to Comment Bam_Man
Bam_Man's picture

"Go, go, go you mixed up Siciliano,

It's a-so delisha, everybody now capische!"

Wed, 07/18/2012 - 16:36 | Link to Comment machineh
machineh's picture

Yeah. You toucha my loan, I breaka you face.

Wed, 07/18/2012 - 16:02 | Link to Comment Glasnost
Glasnost's picture

Eh, a billion a million what it matta?  It's just paper.

Wed, 07/18/2012 - 16:02 | Link to Comment Andrew Jackson ...
Andrew Jackson epitaph's picture

OT

http://www.rfi.fr/asie-pacifique/20120717-crise-economique-600-entrepris...

Google trans :

The bad news accumulates for the Chinese economy. Growth reached 7.6% in the second quarter. This is the lowest level in three years for the "world factory". In June, foreign direct investment fell 6.9% and we learn that this Tuesday, July 17 600 Chinese companies have launched an appeal for assistance to authorities in Zhejiang, one of the richest provinces of the east. They are drowning in debt and can not repay the banks.

Our Beijing correspondent, Stéphane Lagarde

The case recalls the debt crisis of the SMEs in Wenzhou last summer. Except this time, small and medium enterprises are not the only ones concerned. More importantly, it occurs on the shores of Lake of Hangzhou, the city of millionaires Chinese south of Shanghai. 600 companies have launched the "emergency call" to the authorities of Zhejiang Province, the site reported 21 Shingji Jinji Baodao (The economy of the twenty-first century).

Some of them are among the 500 largest companies in the country: the giant furniture Jiayi for example, or the group Rongshi specializing in wood panels for construction. More money to repay the loans, lenders are panicking!

On June 14, police in Hangzhou calls Zhongjiang Yu, the chairman of property group Zhongjiang. The latter is then unable to repay loans amounting to several hundred billion yuan, the newspaper said. The banks then fall onto their customers.

The manufacturer of electrical cables Hupai must pay 80 million yuan (more than 10 million euros) to the Bank of China and Huaxia Bank.

Then what is the guarantor of the group that was called to order by four banks, with a slate of 100 billion yuan. The companies concerned ask the authorities to suspend debt payments without reducing the height of their loans within three years.

This cry for help is a sign that falling interest rates decided by the Central Bank is not enough to revive credit. As in Wenzhou last summer, the central government will likely intervene to avoid bankruptcy.

Wed, 07/18/2012 - 21:16 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Well, those businesses would NEVER have gotten started had it NOT been for the Chinese government.  Isn't that right, Mr. Obama?  Mr. Obama?  Now where the hell did he go?

Wed, 07/18/2012 - 16:13 | Link to Comment Manthong
Manthong's picture

Billion, million, schmillion - peanuts in the new world of CB banking.

Besides, Sicily is not Compton.. 

There is no seething cauldron ready to erupt there, right?

http://www.telegraph.co.uk/news/worldnews/europe/italy/8673686/Sicilys-Mount-Etna-erupts.html

Wed, 07/18/2012 - 16:06 | Link to Comment Josh Randall
Josh Randall's picture

It's a Scilian message...it means The Bernank sleeps with the fishes

Wed, 07/18/2012 - 16:08 | Link to Comment Hedgetard55
Hedgetard55's picture

Sicikly makes nice wines, the Nero D'Avola red and the Grillo/Inzolia white blends.

Wed, 07/18/2012 - 16:15 | Link to Comment Bam_Man
Bam_Man's picture

Yes, they sure do - especially for the money.

But Tuscany is where the REALLY good stuff  - Brunello - is made.  

Wed, 07/18/2012 - 16:10 | Link to Comment ToNYC
ToNYC's picture

The Mafia that doesn't exist never made 400 large so fast. Nice gaming, capischers.

Wed, 07/18/2012 - 16:14 | Link to Comment Againstthelie
Againstthelie's picture

The German taxpayer will be glad to see, that his hard earned money is being treated carefully. Gladly only stupid fascists believe, that other people's money is always spent and lost and that in fact Marxism is being proven correct and working in the brave new EUSSR.

Wed, 07/18/2012 - 16:14 | Link to Comment Vincent Vega
Vincent Vega's picture

Mama mia that'sa spicya meatballa!

Wed, 07/18/2012 - 16:17 | Link to Comment JackT
JackT's picture

Already planned?  Since when...yesterday?

Wed, 07/18/2012 - 16:21 | Link to Comment mayhem
mayhem's picture

i see a reality show in the making.... i mean fake reality like Jersey Shore, housewives or the stock market. 

Wed, 07/18/2012 - 16:25 | Link to Comment Piranhanoia
Piranhanoia's picture

Please make it require that Mario and his Goldman Sachs go to Sicily.  Signor Gambinoleone is waiting to welcome them graciously.

Wed, 07/18/2012 - 16:26 | Link to Comment Bastiat009
Bastiat009's picture

And the euro is holding up today against the US$ and gold. Could somebody explain why?

Wed, 07/18/2012 - 16:27 | Link to Comment azzhatter
azzhatter's picture

Love to see Blankfein go to Sicily to collect

Wed, 07/18/2012 - 16:30 | Link to Comment magpie
magpie's picture

Free Sicily ?

Wed, 07/18/2012 - 16:31 | Link to Comment jcamargo
jcamargo's picture

If Sicily is Greece, Italy is Spain.

Wed, 07/18/2012 - 16:37 | Link to Comment Debtonation
Debtonation's picture

If Sicily is Greece, and Italy is Spain, does that mean the America is Europe?

Wed, 07/18/2012 - 16:44 | Link to Comment ATM
ATM's picture

Actually, Sicily is California and Italy is the US.

Wed, 07/18/2012 - 17:22 | Link to Comment giovanni_f
giovanni_f's picture

Sicily is by orders of magnitude less broke than third-world UK, e.g., but endowed with a good infrastructure courtesy a generous EU. They have excellent ice cream (in partcular Pistacchio), know how to do justice to fresh fish (crudita del mare) and some areas in the south east (e.g. Ragusa) are actually wealthy with a real unemployment rate that the U.S. of A. may just dream about for the next 30 years even in nominal terms. Sicilians, as South Italians in general are debt free, don't owe their monthly salary to a credit card company many times over as has become a national habit in U.S. and U.K. So please stop comparing this beautiful island or its well educated non-obese people to the U.S. (you simply won't find Detroit-like places in Europe anyway). Sicilians have drawn tremendous profit from sticking with Europe and even Italy and will be part of the Eurozone long after the U.S. will have  disintegrated or been renamed to U.S. of Sheeplestan with a military government.

Wed, 07/18/2012 - 17:26 | Link to Comment jcamargo
jcamargo's picture

You are right, and they have Mama to provide them shelter and good food and friends and cousins to pass them black market jobs if necessary. Decades of experience in the informal economy. Resilient.

Wed, 07/18/2012 - 21:23 | Link to Comment ZeroAvatar
ZeroAvatar's picture

A handsome young Sicilian and his lovely bride were married.  On the honeymoon, the bride discovered that her new husband was missing 3 toes on his left foot.  She ran downstairs, exclaiming, "Mama, Mama!  He'a only have a foot an' a half!"

 

Mama said,  "You stay down here!  This is a job for you'a MAMA!"

Thu, 07/19/2012 - 09:01 | Link to Comment paulie
paulie's picture

I'd rather be a Sicilian enslaved to local gangsters than an American enslaved to Jew bankers.

Wed, 07/18/2012 - 21:00 | Link to Comment Ropingdown
Ropingdown's picture

Some would say "sticking it to Europe" rather than "sticking with Europe."  The Milanese might say so, too.  If the "South Italians in general are debt free" the explanation can be found in the taxes collected north of Rome and in emmigration.

Wed, 07/18/2012 - 16:47 | Link to Comment ShorTed
ShorTed's picture

Aaaaaaaaannnnnddd it's gone!

Wed, 07/18/2012 - 17:14 | Link to Comment Jack Sheet
Jack Sheet's picture

Doubtless the Italian central bank is printing the money. Easy as piss. Bankote code S.

http://ftalphaville.ft.com/blog/2011/01/18/461881/the-mechanics-of-irish...

Wed, 07/18/2012 - 21:26 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Risk free= We can always print more.

Wed, 07/18/2012 - 17:28 | Link to Comment Negro Primero
Negro Primero's picture
NO TITS NO TRANSFER!

 

Nudity not welcome on public beaches, says Italy's top court

Group fined for baring all in Sicily: 1,200-euro fine plus another 1,000 in legal costs.

Wed, 07/18/2012 - 17:36 | Link to Comment New_Meat
New_Meat's picture

'Turn Sicily into a land of desperation where everything is destroyed," Sicily's governor Lombardi said.'

What's this 'Turn Sicily" crap?  T'Were ever so.  and we've been experiencing the results.  Lombardi is going for the crumbz.

- Ned

Wed, 07/18/2012 - 17:57 | Link to Comment vincent
vincent's picture

Did my part. Bought a gallon of olive oil

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