Skip to comments.450,000 Businesses Shut Down in Italy; Constitutional Crisis in Spain
Posted on 11/26/2012 6:32:01 PM PST by Kaslin
Here are a couple of interesting economic links from Italy courtesy of reader Andrea. The translations from Italian are a bit choppy, but the gist of the articles is easily understandable.
Non-Performing Loans Jump 15.3%, Write-Downs 21.6%
From Thompson Financial News: Non-Performing Loans Jump 15.3%
Non-performing loans amounted to approximately 117.6 billion, 1.8 billion more 'than in August and 15.6 billion in more' than in September 2011, marking an annual increase of 15.3%.
With regard to loans net of write-downs at the end of September totaled 67.2 billion, about 1.5 billion more 'than a month before and almost 12 billion more' than in September 2011, with an annual increase of 21.6%.
In just three years, from 2010 to 2012, about 450,000 companies closed with a loss of over 300,000 jobs, while the Italians caught up in terms of wear [usurious loans] increased to 600,000.
These are the data provided by Sos enterprise-Confesercenti usury-day. In particular, wear Italian capital Rome and Naples are confirmed.
It is "wear submerged, chameleon, now violent now` hit and run 'which marks a difference between the demands of incredible help and legal reality." [Bankruptcy looms]
The President of Confesercenti Marco Venturi pointed out that "the rest of the bank lending to businesses fell by 6%, rising instead both protests, particularly in the South, both failures, especially in Lombardy and the north-east. Do not forget that over the years has formed an army of 5 million people who for various reasons - bad payers, protested - is effectively excluded from the banking system and therefore must satisfy all its needs for cash."
Spain takes a giant step towards a full-blown constitutional crisis as Catalans overwhelmingly elect candidates promising a break-up vote.
Catalonia has delivered a sweeping mandate to political parties pledging to hold a referendum on independence in elections that place the northern Spanish region on a collision course with Madrid.
In a vote billed as the most decisive elections in the history of Catalonia by Artur Mas, the regions president, pro-referendum parties won 87 of the Catalan parliaments 135 seats.
Following weeks of intense debate about Catalonias future relationship with Spain, turnout was 69.5 per cent, the highest for a Catalan regional election in nearly 30 years.
The vote comes amid pressure from various regions around Europe for more independence, including proposals for a referendum on the issue in Scotland in 2014.
Spains central government has said any move to push ahead with a referendum on independence for Catalonia, which has an economy the size of Portugals and makes up about a fifth of Spanish output, would be illegal and against the Spanish constitution.
Catalonia has built up a debt pile of €42bn, the largest of all of Spains 17 regions, and is currently locked out of international capital markets. Earlier this year the region was forced to request an emergency €5bn credit line from Spains central government to avoid defaulting on payments.Messy Politics
The ruling (Center-Right) Convergència i Unió party which favors a referenced actually lost 12 seats in the election, from 62 to 50. However, it lost those seats to more radical pro-independence groups.
Artur Mas, leader of Convergència promised a referendum but will have to align with even more radical groups to produce one according to CNN.
Artur Mas, president of the region's parliament, promised a referendum on independence for one of Spain's most important regions if he won re-election.
But after the election, Mas has a more difficult task because his center-right Convergence and Union coalition lost 12 of its 62 seats, a strong setback for a party that was hoping to gain a simple majority in the 135-seat legislative body.
The Catalan Republican Left party was the big winner in the elections, winning 21 seats, according to the Catalonia elections web site, which reported 98% of the votes had been counted.
The Catalan Republican Left party also backs independence, and the two parties could form a majority in parliament on the independence issue.
They, however, differ on most other issues, especially economic policy.
Voters in Catalonia, the most powerful economically of Spain's 17 regions, heeded the call that these would be historic elections, even if independence wasn't on the ballot Sunday. They voted during a deep economic crisis in the eurozone countries, especially in Spain and in Catalonia. Voter turnout was the highest in 24 years for Catalan elections, officials said.
The Spanish government in Madrid vows to block any self-determination referendum, arguing that the constitution does not permit a region alone to decide its independence.
Last September 11, an estimated 1.5 million people -- 20% of Catalonia's population -- filled the streets of Barcelona, the Catalan capital and Spain's second-largest city, demanding independence.
A survey earlier this month by the Catalan government's polling center showed 57% of Catalans would vote for independence, a 6% increase from last June and a 14% increase from a year and a half ago.Judging from the election, I suspect the percentage who would vote for independence is much higher.
A showdown with Madrid looms.
Ummm.... What’s a Constitutional Crisis????
I’m so confused
I’m glad we don’t have that problem.
There is a bit of chaos going on in Spain. You have some companies who are shutting down...with no real benefit packages for the employees....mostly because they are not full-up companies, with full status.
In Europe, you can create business operations with minimum capital...but you gain the status of a business without the ‘extras’ (significant cash to handle a bankruptcy, if it were to occur). This means that you just kinda shut down the operation without much warning, and the only plus-side for employees is the state-run unemployment insurance. Naturally, this angers employees because a full-status company would offer a severance package as you walk out the frontdoor.
450,000 companies and 300,000 jobs?
does that make any sense?
Maybe some of the companies did not have employees, and only consisted of one incorporated business owner?
If true its hugh.
I’m thinking that perhaps the number was 45,000 - or maybe - 4,500...
The numbers probably do not include business proprietors in the unemployed rolls when they shut their doors. For example, if my business closed it would not show up as a job loss. I’m a sole proprietor and do not collect unemplomnt so while I would in reality be jobless, I would not be included in the official jobless numbers.
I’ve been able to document 483 companies that closed their doors since the election, with zero reported jobs lost.
That is weird...
“shelf” or “shell” companies?
Names like Target, GameStop, Lone Star Steak House, St. Vincent de Paul Thrift Store, Kmart, Caterpillar Inc., All had plant/facility/store closures with no reported jobs lost.
And the Egyptian markets crashed 10% and all this resulted in only a 40 point loss on the DJIA.
Talk about a rigged casino.
Get out while you can, folks.
Well, I guess they could transfer employees to other locations in some cases, maybe self-employed “contractors” were laid off and that wouldn’t count as their layoffs I guess.
Other than that, I have no idea.
Is there a relatively safe harbor for 401ks. I feel like I might as well get a big screen
I guess that is possible
Or they could be flat out lying.
Only the news the State wants reported gets reported, Citizen.
What do people expect? Perhaps they can borrow our Declaration of Independence from plunderers. We’re not reading it.
How long do you think 401K’s will be safe?
I don’t know. I think the GOP will cave and the markets will spring up for a month. Then doom will set in. Crying shame.
You think the “deal” will fool people for a whole month??
One thing that definitely, absolutely will happen is that the bond bubble will burst. So you want to be short bonds, or long interest rates, possibly in an ETF. But no one knows when this event will happen. Could be tomorrow or a long time from now.
You think the “deal” will fool people for a whole month??
Taxpayer paycheck > Taxpayer Federal and Government Contractor Retirement > Fund Manager > Market (so called).
No taxpayer extortion money and Extortion Care shakedowns
No Federal and Contractor Retirement $
No Fund Manager Cut
Stock Government Market
“How long do you think 401Ks will be safe?”
Depends on what you consider “safe.”
Apart from the market conditions, which could end up like 2008, there is also the specter of the government “confiscating” retirement funds and “giving you” an anutity ( which I would bet you would be a whole lot less than if you were allowed to spend the money you had saved).
It would definitely be less
i didn't do it here, but most people seem to want to do this -- i can't understand it though.
It's the latest iteration of "new math"; if a job doesn't exist, how can someone be out of it?
You can switch it to something like Fidelity Cash. They actually hold the capital. You don’t earn anything, but at least you can get it out faster than from a 401K and they actually have the money.
If the government decides to steal private retirement, I think the first thing they’ll do is freeze 401Ks. Private IRAs held in some sort of cash will probably be available for a while longer.
Who will care about penalties at that point?
Of course, the safest way to go is to buy physical PMs and keep them on-hand.