{"id":18600,"date":"2016-03-08T11:33:33","date_gmt":"2016-03-08T16:33:33","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18600"},"modified":"2016-03-08T11:33:33","modified_gmt":"2016-03-08T16:33:33","slug":"the-collapse-of-italys-banks-threatens-to-plunge-the-european-financial-system-into-chaos","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18600","title":{"rendered":"The Collapse Of Italy\u2019s Banks Threatens To Plunge The European Financial System Into Chaos"},"content":{"rendered":"
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The Collapse Of Italy\u2019s Banks Threatens To Plunge The European Financial System Into Chaos<\/a><\/h3>\n<\/div>\n
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\"Italy<\/a>The Italian banking system is a \u201cleaning tower\u201d that truly could completely collapse at literally any moment.\u00a0 And as Italy\u2019s banks begin to go down like dominoes, it is going to set off financial panic all over Europe unlike anything we have ever seen before.\u00a0 I wrote about the troubles in Italy\u00a0back in January<\/a>, but since that time the crisis has escalated.\u00a0 At this point, Italian banking stocks have declined a whopping\u00a028 percent<\/a>\u00a0since the beginning of 2016, and when you look at some of the biggest Italian banks the numbers become even more frightening.\u00a0 On Monday, shares of Monte dei Paschi were down 4.7 percent, and they have now plummeted 56 percent since the start of the year.\u00a0 Shares of Carige were down 8 percent, and they have now plunged a total of 58 percent since the start of the year.\u00a0 This is what a financial crisis looks like, and just like we are seeing\u00a0in South America<\/a>, the problems in Italy appear to be significantly accelerating.
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So what makes Italy so important?<\/p>\n

Well, we all saw how difficult it was for the rest of Europe to come up with a plan to rescue Greece.\u00a0 But Greece is relatively small \u2013 they only have the 44th largest economy in the world.<\/p>\n

The Italian economy is far larger.\u00a0 Italy has the 8th largest economy in the world, and their government debt to GDP ratio is currently sitting at about 132 percent.<\/p>\n

There is no way that Europe has the resources or the ability to handle a full meltdown of the Italian financial system.\u00a0 Unfortunately, that is precisely what is happening.\u00a0 Italian banks are absolutely drowning in non-performing loans, and\u00a0as Jeffrey Moore has noted<\/a>, this potentially represents \u201cthe greatest threat to the world\u2019s already burdened financial system\u201d\u2026<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Collapse Of Italy\u2019s Banks Threatens To Plunge The European Financial System Into Chaos The Italian banking system is a \u201cleaning tower\u201d that truly could completely collapse at literally any moment.\u00a0 And as Italy\u2019s banks begin to go down like dominoes, it is going to set off financial panic all over Europe unlike anything we […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[61,12811,63,12812,5983,6792,12813,6061,312,11745,4860,12814,12815,6801,1464,12816,4901,12817,6066,753,12452],"class_list":["post-18600","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banking","tag-banking-stocks","tag-banks","tag-carige","tag-economiccollapseblog","tag-european","tag-european-financial-system","tag-financial","tag-financial-crisis","tag-financial-crisis-2016","tag-financial-panic","tag-italian","tag-italian-banking-stocks","tag-italian-banks","tag-italy","tag-italys-banks","tag-michael-snyder","tag-monte-dei-paschi","tag-panic","tag-stocks","tag-the-crisis"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18600"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18600\/revisions"}],"predecessor-version":[{"id":18601,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18600\/revisions\/18601"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}