Italian mini-bots & Target2
Jun 11th 2019, 5:08 am
#16
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Re: Italian mini-bots & Target2
Italy, as a founder member of the EU, will not be thrown out of the euro. It would be counter productive for the other euro states. It would have to leave. Whilst that may be what Salvini wants, it is virtually impossibile - it would require a change to the constitution to even permit a referendum and the italians are still in favour of Europe. Instead Italy will be treated as was Greece and raped and burnt by the other major European euro players. As to whether its the right time to buy a property, Id say that if you just want a good deal, then Italy isnt a place you should invest.
Jun 11th 2019, 7:25 am
#17
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Re: Italian mini-bots & Target2
No comment on the rest of the discussion!
Jun 11th 2019, 3:41 pm
#21
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Posts: 86
Re: Italian mini-bots & Target2
Hello Capo Boi, nice to meet you, and thank you for the advice.
You'd have to admit though, that the German tax payer being well and truly on the hook for A Trillion Euro (I might be exaggerating here, but not much) of unrepayable Italian debt is just an itsy bitsy little ironic???
Do you reckon they've figured it out yet? I don't get to speak to many Germans. They don't let me out much ;0)
Also I couldn't possible argue with the fact that the sun will indeed rise tomorrow, however you can't blame me for considering the purchase of a pair of welders goggles rather than sitting in a darkened room picking fluff from my belly button whilst the solar eclipse is happening outside!
You'd have to admit though, that the German tax payer being well and truly on the hook for A Trillion Euro (I might be exaggerating here, but not much) of unrepayable Italian debt is just an itsy bitsy little ironic???
Do you reckon they've figured it out yet? I don't get to speak to many Germans. They don't let me out much ;0)
Also I couldn't possible argue with the fact that the sun will indeed rise tomorrow, however you can't blame me for considering the purchase of a pair of welders goggles rather than sitting in a darkened room picking fluff from my belly button whilst the solar eclipse is happening outside!
Jun 11th 2019, 3:54 pm
#22
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Re: Italian mini-bots & Target2
Hello Modicasa, a pleasure to meet you too!
Very interesting reply.
I should at this point apologise to everyone as I think I've thrown you a bit of a curved ball I'm afraid.
When using the word Invest, I guess I was lazily using it in the Gordon Brown/New Labour sense of the word rather than the more traditional Share Holder sense. Of course I have absolutely no anticipation of making a single solitary brass Razoo on any property I may purchase, indeed I have no doubt we'd be in really ugly levels of negative equity the morning after receiving the keys, in fact you may notice in another thread I made the point that we are vary wary about the location of our purchase for the fear of effectively being trapped in an area we're unhappy with.
Very interesting reply.
I should at this point apologise to everyone as I think I've thrown you a bit of a curved ball I'm afraid.
When using the word Invest, I guess I was lazily using it in the Gordon Brown/New Labour sense of the word rather than the more traditional Share Holder sense. Of course I have absolutely no anticipation of making a single solitary brass Razoo on any property I may purchase, indeed I have no doubt we'd be in really ugly levels of negative equity the morning after receiving the keys, in fact you may notice in another thread I made the point that we are vary wary about the location of our purchase for the fear of effectively being trapped in an area we're unhappy with.
Jun 11th 2019, 4:11 pm
#23
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Posts: 538
Re: Italian mini-bots & Target2
Hello Simon,
Your number of a triillion I would say is pretty much spot on.
But the key is that it is effectively a German surplus without Germany being able to withdraw or use the funds. So on an Italian default, Germany’s balance goes to zero and I would guess that they would not be happy bunnies about this but it is a purely bookkeeping balance and maybe they would get over it.
What would happen though is that Italy would almost certainly not be able to finance its budget deficit externally so inflation and interest rates would only go the one way...ie up, up up and the currency, down, down, down. So economically ((disregarding the potentially huge social consequences) you would be brave to buy in this scenario. But, and I repeat, the sun is still going to rise tomorrow.
Best wishes
CB.
Your number of a triillion I would say is pretty much spot on.
But the key is that it is effectively a German surplus without Germany being able to withdraw or use the funds. So on an Italian default, Germany’s balance goes to zero and I would guess that they would not be happy bunnies about this but it is a purely bookkeeping balance and maybe they would get over it.
What would happen though is that Italy would almost certainly not be able to finance its budget deficit externally so inflation and interest rates would only go the one way...ie up, up up and the currency, down, down, down. So economically ((disregarding the potentially huge social consequences) you would be brave to buy in this scenario. But, and I repeat, the sun is still going to rise tomorrow.
Best wishes
CB.
