Part of this issue is that the federal gov’t of Italy would like to just hand money to the bank structure (call it a cheap loan or just a “gift”).
The EU has a law...forbidding this type of action. Based on what’s been said on business news in Europe for the past month...something will have to happen with a loan from someone, or it’ll collapse.
The general talk over the past week is that if it doesn’t pass...the PM will resign, and a new election will be called. Right now....some Tea-Party-like group...the Five-Star-Movement...would take in a lot of votes and might be friendly toward a ITEXIT situation. This makes everyone uncomfortable. Added to this....the Austria election concludes tomorrow and a right-wing guy may win it.
For the Germans....heck of a lot of problems if both go against their ‘wishes’.
IOW, the EU has a law against exactly what the Fed does here.
Very clear analysis. Thank you. “Movimento Cinque Stelle” and the Five Star Movement has been building steam for four years since March 2013 and presently has support across the country. The 5 Star people lack the strategic and financial skills of the Tea Party and will need American assistance immediately.