Italy, EU Instability Roils U.S. Markets — A Sign Of Crisis To Come?

IBD ^ | 05/31/2018

[SeekAndFind]

U.S. markets have been roiled in recent days by political and economic turmoil in Italy. Is it an overreaction? Not at all. Markets are right to be worried.

Much of the U.S. has been fixated on President Trump's on-again, off-again decision to impose tariffs on $50 billion of Chinese goods. But Italy's crisis, now at a rolling boil in the background, has spooked the markets too.

Markets plunged Tuesday, before rebounding on Wednesday. That should be a warning.

Italy has had a rough two decades, but is now undergoing dangerous political turbulence that risks Italy's social and political stability, and could lead to the collapse of the European Union as we know it. That would not be good for the U.S., or any other nation for that matter.

How did this happen? A parliamentary election in March handed a clear popular mandate to the populist Five Star Movement (M5S) and the right-of-center Lega, or "League," to form a government.

But the current president, Sergio Matarella, vetoed the idea. He didn't like their policies, and especially didn't like their nominee for finance minister, Paolo Savona, an 81-year-old economist and leading Italian euro-skeptic. Italy's constitution gives the president the right to veto ministerial nominees.

The Italian establishment is truly alarmed that the two parties said they'll seek to undo the previous government's economic reforms, which have kept Italy firmly anchored to the EU. The two parties also vow to pursue a grab bag of other populist economic policies, including a guaranteed basic income and a flat income tax, that terrify establishment politicians.

[proxy_user]

I am not normally a fan of Cramer, but this time he is right. We are not Italy, we don’t do much business with Italy, and a crisis in Italy would not have much impact on the earnings of US-based companies.

[I want the USA back]

Uncertainty is not instability. Your not knowing how to predict that future doesn’t mean that there is chaos.

[VanDeKoik]

“Italy, EU Instability”

So basically it’s Situation Normal....AFU?

[RayChuang88]

The answer is NO. Like another poster said, we do relatively business with Italy. Now, if there was a major economic crisis in China, that's a very different story.

[Buckeye McFrog]

Marching lemming-like into the future slavery the Globalists have planned for us would certainly have been predictable.

[Fitzy_888]

ITALY: The Election That Will CRASH THE EU
https://youtu.be/cQHQPWGc_bU