Author Topic: Italy's Popolare Vicenza sells 9 pct of insurer Cattolica to Berkshire Hathaway  (Read 1500 times)

Cigarbutt

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Inspired from Whistling in the Dark (They might be giants)
Apologies: no financial literature reference.

A central banker came to me, and said,
Let's extend and pretend,
We'll do whatever it takes, he said,
Balance sheets need to mend,

We thought it made sense,
Mark to market, can suspend,
Supress the price of money, good pretense,
Build up debt, with no end,

Bail-outs and risk shifting, many connotations,
Downside can be transferred but does not evaporate,
Out of the QE trap, trying to extricate,
Who pays the tab may be the center of all our attentions,

Maybe the magical models are too complex for my simple mind,
But with too much debt must come a bad loan hangover,
Even in a world where Japan is one of a kind,
The poster child and when zombies are taking over.

No worries, be all in and kick the can,
Just watch out when the shit hits the fan.
« Last Edit: October 07, 2017, 09:49:57 AM by Cigarbutt »


Cameron

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    • Cameron's Value Investing Blog
OECD: Economic Survey Italy February 2017.

It's such a depressing read. There are so many issues. Where to start and where to finish? It must be lack of political willingness and decisiveness to really make changes to the better, where it will hurt in the short run, to get better in the long run. I think irresponsible politicians.

A nation with approx. EUR 320 B non performing loans on the balance sheets of its banks at some date in 2016. It's not only mind boggling, it's also ridiculous. Lots of zombie lending clients in the banks walking around dead, without the appropriate neck shot and liquidation af assets, simply because the bank can't afford the loss on its capital. Pure Stockholm syndrome. Consequense: Phony bank balance sheets & zombie banks.

The fundamental question in all banking business: "Who is this going to be a pitty for, if it goes wrong?" has lost its meaning.

There is a long way home.

- - - o 0 o - - -

Perhaps we will se more Berkshire deals like this, based on opportunities caused by local conditions.

I'm surprised I haven't seen any deals in Greece recently 90% of value has been wiped off the stock exchange still since 2008. Greek malls can be had for pennies on the dollar even as they have started to clean up, unemployment is on a downtrend for the last 2 years and they cleaned up their trade and current accounts. They still have a lot of non-performing loans like Italy though