Is Europe Choosing To Disappear?
Authored by Giulio Meotti via The Gatestone Institute,
Authored by Giulio Meotti via The Gatestone Institute,
Submitted by Dan Steinbock via The Difference Group,
As the Eurozone is amid secular stagnation, its old fiscal, monetary and banking challenges are escalating, along with new threats, including the Brexit, demise of Schengen, anti-EU opposition and geopolitical friction. According to Dan Steinbock, Brussels can no longer avoid hard political decisions for or against an integrated Europe, with or without the euro.
Submitted by Pater Tenebrarum via Acting-Man.com,
Portugal’s Rickety Banking System
After the unseemly bankruptcy of the Espirito Santo Group and the associated bank, then Portugal’s second biggest (likely a result of not praying enough, see: “Big Portuguese Bank Gets Into Trouble” and “Fears Over Banco Espirito Santo Escalate” for the gory details), Portugal’s state-run deposit insurance fund basically ran out of money.
A little over a week ago, Portugal announced that for the second time in less than two years, Lisbon would be forced to bailout a large lender.
This time around it was Banif, the country’s seventh-largest banking group which ran into trouble when it couldn’t repay a previous government cash injection (so really, this was a bailout of a bailout).
Back in August of 2014, Portugal had an idea.
Lisbon would use some €5 billion from the country’s Resolution Fund to shore up (read: bailout) Portugal’s second largest bank by assets, Banco Espirito Santo. The idea, basically, was to sell off Novo Banco SA (the "good bank" that was spun out of BES) in relatively short order and use the proceeds to pay back the Resolution Fun. That way, the cost to taxpayers would be zero.
You didn’t have to be a financial wizard or a fortune teller to predict what was likely to happen next.