Italy- NOT to big to fail.. too big to bail... Update: IMF in town

[bernadette]

At least our ministers for finance have the decency to quit before doing the damage. And the "acting" minister, he who was also minister during the interim government 30 days, well, he keeps his friends up to date on happenings so that they can clear their bank accounts before the revenue does it for them. making him a fairly popular guy, at least in some quarters.
The fun is only starting. Watch the news as it unfolds. If any mention of people at all, it will probably be about those poor 5 million or so Germans who stand to lose their jobs. Not a word about the millions in Greece, Italy, Spain, Ireland etc. all that will be mentioned in relation to those countries are the "lost assets"..

'German' wealth is based on all the money they loaned to our countries banks without bothering with a little thing called a credit check or rating. We bought all those German goods with loans a good bank would never have approved.

[Ephilant]

Tell me about it. we're looking at a bill for 300 billion for it. and they seriously expect it back, with interest, after stamping the whole country into the ground and turning the austerity heel on it for good measure.
But with the contribution of our guys, the whole thing is beginning to look more and more like an episode of comedy capers. Just not that serious...

[Ephilant]

Banca Monte dei Paschi di Siena, the world's oldest bank and 3rd biggest lender in Italy has just received the green light for a 2 billion € "assistance" from the Italian Treasury and Bank of Italy. This is on top of the 1.9 billion € it received in 2009

[PaddyJoe]

Appparently Monti was reported by the Italian press today as threatening to resign if Eurobonds were ruled out. Story denied an hour later. Meanwhile Berlusconi is back sabre rattling.
It's turning out to be a really good week for rumors

[DCon]

Italy has just paid almost 3% for 6 month debt

[ang]

Mario Monti is today refusing to rule out Italy tapping the ESM.

[DCon]

Mario Monti is today refusing to rule out Italy tapping the ESM.

I might tap the Loch Ness Monster.

It is as real as the ESM at this stage

[C. Flower]

Mario Monti would tap anything that might help prop up the banks.

[ang]

Mario Monti would tap anything that might help prop up the banks.

Cancelled a bond auction scheduled for 14th August apparently "positve tax revenue" has enabled this decision

http://www.forexlive.com/blog/2012/0...-bond-auction/

[ang]

The ECB (Visco) have asked some Italian banks to raise capital levels and to devise better management of credit risk.

Meanwhile Mario Monti has declared "war" on markets and prejudice -

*DJ: Italy PM Monti Describes Italy As "At War" with Stereotypes at Home, Abroad

Italian PM Monti says Italy has started a 'war' against markets prejudices; a war against the Italian debt legacy

[ang]

Zerohedge -

Moody's Downgrades Italy to Baa2, outlook negative

[DCon]

Monti getting plucky

Italy doesn't need German cash, Monti tells Germans

Italy needs moral support from Germany but not its cash, Prime Minister Mario Monti said in an interview

Monti pointed out that, while five euro zone countries have received or requested international bailouts, Italy has not yet received "a single euro" of help.

"I've got the impression that the majority of Germans believe Italy has already received financial aid from Germany or the European Union - that's not the case. Not a single euro."

German loan guarantees and contributions to the euro zone's EFSF and ESM rescue funds total around 400 billion euros.

Monti added that Germany benefited from being in the euro zone. "It is the biggest beneficiary of the common market," he said, referring to the country's export-oriented economy.

http://uk.reuters.com/article/2012/0...87409020120805

[C. Flower]

Monti getting plucky


http://uk.reuters.com/article/2012/0...87409020120805

Monti is not Cowan.

[DCon]

Italy would be 'mad' to seek a bailout before Spain..

Italian policymakers have tried to assure financial markets that their country has no intention of making an early request for intervention by eurozone bailout funds, at least not before Spain.

Backing up assertions by Mario Monti, the prime minister, that Rome does not need market intervention Antonio Catricala, cabinet undersecretary, said Italy would be “mad” to act before Spain.

“If we were to move first, the others would consider us mad. The state of our public finances is much better than that of many other countries,” he told Corriere della Sera newspaper.

“We are not and we do not want to become subjects of the European Union,” Mr Catricala said, arguing that if Italy did sign a memorandum of understanding in asking for market intervention it would only signify confirming commitments already taken on and would not lead to new obligations.

A “go it alone” theme is gathering momentum in Italy. Francesco Giavazzi, economics professor and adviser to the government, is among economists, analysts and parliamentarians suggesting schemes involving asset sales and tax breaks on bond purchases that would allow Italy to reduce its €2 trillion of public debt and cut the already decreasing proportion held by foreign investors.

The Spanish government, which has softened its resistance to a eurozone aid programme, said it had time to assess the scope of the ECB’s proposed intervention.

"We will find out the details and then we will draw up a precise calendar," Luis de Guindos, finance minister, said in an interview with ABC newspaper when asked if Madrid would ask for aid in September. "We've got time ... the treasury is financing itself relatively well in the market, given the circumstances."

http://www.ft.com/cms/s/0/936d81ba-d...#ixzz22l59RCXz

[Dr. FIVE]

Hash farm found under the central bank

http://www.nytimes.com/2012/08/15/wo...in-tunnel.html