There is a bank run going on. The targets are Italian banks. Rich people are selling Italian bonds and buying other assets.
Italy’s debt is huge. Its bonds constitute a quarter of bonds held by European banks. Only Germany has issued more bonds — just barely. Italy has issued more bonds than France. You can see this here.
If Italy goes, there is no country in Europe that can bail out Italy’s banks, let alone all the banks that hold Italian debt.
The politicians keep holding meetings, as if they knew what is happening, as if they can do anything.
The market is now forcing events. The politicians are not in charge.
The European Central Bank can inflate, but what will this do to the euro? In any case, it has resisted inflating.
Almost no one is talking about this publicly. One man is: Irish investment manager Eddie Hobbs. But almost no one is listening.
I am listening. You should, too.
