28 November 2016   Leave a comment

As the Italian constitutional referendum looms large, the fate of Italian banks may hang in the balance.  Many Italian banks are undercapitalized:  the lack the money to cover all the claims that depositors and bondholders currently have on their assets.  The fear is that if voters reject Prime Minister Renzi’s proposed reforms, then Renzi will resign (as he has promised to do).  The lack of a stable government may then trigger Italian deposit and bond holders to withdraw their money from the banks which, in turn, will force many of these banks to shut their doors.  Since many other European banks are bondholders to Italian banks (Deutsche Bank, for example, holds many bonds from Italian banks), then the fear may spread to other European banks.  It is a very delicate moment.

India has the largest percentage of poor people of all the countries in the world.  25.4% of all the poor people in the world live in India.  The data from Credit Suisse which analyzes the richest people in the world also contain information about poverty.  The growing income inequality in the world continues to worsen as the data from 2010 to 2016 clearly indicate:


There is little reason to believe that the market will, on its own, correct this trend.  Indeed, inequality is becoming more deeply entrenched.

The Color of Affluence in America

There is little question that many outside of Cuba considered Fidel Castro to be a ruthless dictator.  But the news reports from Cuba suggest that people in Cuba have been genuinely moved by his death.  The media is reporting very long lines of people wishing to pay their respects and the interviews (never a reliable index of true feelings os large populations since one never knows who was not asked, refused to answer, or who were simply ignored by the reporter) all suggest resigned sorrow.


Posted November 28, 2016 by vferraro1971 in World Politics

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