Business

By Chris at www.CapitalistExploits.at

Today we discuss the largest wholesale funding market in the world, the eurodollar market, and how its "normal" form of functioning has dramatically changed, causing all manner of problems in the global economy. 

In last week's post we discussed shadow banking at its finest: the eurodollar market. It was the precursor to this article and so if you've not read it then it'll be useful to do so here before reading this article.

Submitted by John Rubino via DollarCollapse.com,

The Trump Christmas stock market rally has taken valuations beyond a point that in the past has signaled trouble, which in turn has generated a lot of cautionary press like the following:

Market indicator hits extreme levels last seen before plunges in 1929, 2000 and 2008

 

Source: Japantimes

15 Billion Euro. That’s the magical (and real) number the Italian bank Banca de Monte Paschi has to be worried about. 15 Billion Euro is the approximate amount its customers have withdrawn from their bank accounts since January.

By EconMatters

Having picked a new prime minister to replace Matteo Renzi, when as reported this morning Italian president Sergio Mattarella asked Foreign Minister Paolo Gentiloni, a loyalist from Renzi's Democratic Party, to form a new government, the chaos surrounding Italy's political future appears to be subsiding, which as we said this morning, is welcome news for the future of Monte Paschi, as Italy's third largest bank may once again avoid a state bailout should enough private investors turn up and inject funds into the failing financial institution, the world's oldest.