As car sales collapse once again in Europe [4] (and Fiat at the top of the pile of dismal results), and the Italian Senate set to hold a no-confidence vote in the Deputy PM, we thought it an opportune moment to revisit the most ridiculous chart in the world. Presented for your eye-rubbing pleasure, Italy - market vs macro... Can you see when the central-planners 'promise' took over, and reality ended?
- *ITALY BANK BAD-LOAN RATIO ROSE TO 6.9% IN MAY VS 5.6% YR AGO
[5]
So it seems for now that a Draghi 'promise' is worth around 400bps of spread...
and the credit creation process has re-collapsed with new loans to the private sector falling at their fastest pace on record...
[6]
h/t Sean Corrigan of Diapason Commodities