Wednesday, January 20, 2016

Italy Needs To Appoint A Commission!

And double-quick! We've got to find out where all of the bad loans on the banks' balance sheets are coming from!
The increased levels of bad loans confronting the Italian banking system is raising investors’ concerns about the health of the sector, prompting another selloff in local banking stocks on Tuesday.

According to data published Tuesday by Italy’s banking lobby ABI, Italian banks’ gross bad loans, measured at their face value, stood at €201 billion in November, 11% higher than the same period a year prior.

Gross bad loans were 10.4% of total loans in November, the highest percentage figure since 1996.
Let's see if we can get the commission started.
  • The Italian government is deeply in debt. Their loans are probably worthless.
  • The Italian population, less Muslims, is aging and decreasing. Not to be rude, but taking a look at the European Muslim community, I'm not sure I want to be lending them money.
  • Private Italian corporations are strangled with socialist / fascist regulations. I don't think you can expect much of an ROI on loans to them.
  • In an act of codependency, the ECB is constantly enabling basket-case countries all around Europe to borrow more money. Again, more unreliable sovereign debt.
Hmm. Wait a sec. Maybe we need to redirect the commission.

The question isn't what's the source of all the bad loans, the question really is how are there any good loans in the first place?

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