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450,000 Businesses Shut Down in Italy; Constitutional Crisis in Spain
Townhall.com ^ | November 26, 2012 | Mike Shedlock

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%.


450,000 Businesses Shut Down in Italy in Three Years

La Stampa reports 450,000 Businesses Shut Down in Italy in Three Years.

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."

The fact that more businesses shut down than jobs lost in those businesses says that many of the businesses are shell corporations. However, the implied stress is very real.

For more from Andrea regarding Italian bankruptcies, please see Reader Comments on Italy's Insane Labor Rules
 

Constitutional Crisis in Spain; Pro-Referendum Parties Win 87 of 135 Seats

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 region’s president, pro-referendum parties won 87 of the Catalan parliament’s 135 seats.

Following weeks of intense debate about Catalonia’s 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.

Spain’s central government has said any move to push ahead with a referendum on independence for Catalonia, which has an economy the size of Portugal’s 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 Spain’s 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 Spain’s 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.



TOPICS: Business/Economy; Culture/Society; Editorial; Foreign Affairs
KEYWORDS: eucrisis; italycrisis; spaincrisis

1 posted on 11/26/2012 6:32:05 PM PST by Kaslin
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To: Kaslin

Ummm.... What’s a Constitutional Crisis????

I’m so confused

I’m glad we don’t have that problem.


2 posted on 11/26/2012 6:35:10 PM PST by Safrguns
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To: Kaslin

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.


3 posted on 11/26/2012 6:41:45 PM PST by pepsionice
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To: Kaslin; null and void

450,000 companies and 300,000 jobs?

series??

does that make any sense?


4 posted on 11/26/2012 6:45:05 PM PST by GeronL (http://asspos.blogspot.com)
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To: GeronL

Maybe some of the companies did not have employees, and only consisted of one incorporated business owner?


5 posted on 11/26/2012 6:48:46 PM PST by exDemMom (Now that I've finally accepted that I'm living a bad hair life, I'm more at peace with the world.)
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To: GeronL

If true its hugh.

I’m thinking that perhaps the number was 45,000 - or maybe - 4,500...


6 posted on 11/26/2012 6:52:22 PM PST by jonno (Having an opinion is not the same as having the answer...)
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To: GeronL

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.


7 posted on 11/26/2012 6:53:04 PM PST by piasa (Attitude adjustments offered here free of charge)
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To: GeronL

I’ve been able to document 483 companies that closed their doors since the election, with zero reported jobs lost.


8 posted on 11/26/2012 6:56:53 PM PST by null and void (The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.)
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To: null and void

That is weird...

“shelf” or “shell” companies?


9 posted on 11/26/2012 6:58:46 PM PST by GeronL (http://asspos.blogspot.com)
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To: GeronL

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.


10 posted on 11/26/2012 7:04:26 PM PST by null and void (The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.)
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To: Kaslin

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.


11 posted on 11/26/2012 7:04:42 PM PST by Ghost of Philip Marlowe (Prepare for survival.)
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To: null and void

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.


12 posted on 11/26/2012 7:11:29 PM PST by GeronL (http://asspos.blogspot.com)
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To: Ghost of Philip Marlowe

Is there a relatively safe harbor for 401ks. I feel like I might as well get a big screen


13 posted on 11/26/2012 7:11:29 PM PST by MattinNJ (Col. West in 2016!!!!!!!!)
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To: exDemMom; jonno
Maybe some of the companies did not have employees, and only consisted of one incorporated business owner?

I guess that is possible

14 posted on 11/26/2012 7:12:56 PM PST by GeronL (http://asspos.blogspot.com)
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To: GeronL

Or they could be flat out lying.

Only the news the State wants reported gets reported, Citizen.


15 posted on 11/26/2012 7:14:09 PM PST by null and void (The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.)
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To: Kaslin

What do people expect? Perhaps they can borrow our Declaration of Independence from plunderers. We’re not reading it.


16 posted on 11/26/2012 7:14:09 PM PST by PGalt
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To: MattinNJ

How long do you think 401K’s will be safe?


17 posted on 11/26/2012 7:27:31 PM PST by GeronL (http://asspos.blogspot.com)
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To: Kaslin
It's good that nothing like that could happen here.

/johnny

18 posted on 11/26/2012 7:32:18 PM PST by JRandomFreeper (Gone Galt)
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To: GeronL

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.


19 posted on 11/26/2012 7:39:12 PM PST by MattinNJ (Col. West in 2016!!!!!!!!)
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To: MattinNJ

You think the “deal” will fool people for a whole month??


20 posted on 11/26/2012 7:40:39 PM PST by GeronL (http://asspos.blogspot.com)
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To: MattinNJ

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.


21 posted on 11/26/2012 7:42:59 PM PST by steve86 (Acerbic by Nature, not NurtureĀ™)
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To: MattinNJ

You think the “deal” will fool people for a whole month??


22 posted on 11/26/2012 7:54:32 PM PST by GeronL (http://asspos.blogspot.com)
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To: Ghost of Philip Marlowe

Taxpayer paycheck > Taxpayer Federal and Government Contractor Retirement > Fund Manager > Market (so called).

No taxpayer extortion money and Extortion Care shakedowns
..........V
No Federal and Contractor Retirement $
..........V
No Fund Manager Cut
..........V
Stock Government Market
..........V


23 posted on 11/26/2012 8:05:10 PM PST by Varsity Flight (Extortion-Care is the Government Work-Camp: Arbeitsziehungslager)
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To: FReepers; Patriots; FRiends


Some make more than one donation
Many make none
Have YOU contributed?


24 posted on 11/26/2012 8:07:46 PM PST by onyx (FREE REPUBLIC IS HERE TO STAY! DONATE MONTHLY! IF YOU WANT ON SARAH PALIN''S PING LIST, LET ME KNOW)
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To: GeronL

“How long do you think 401K’s 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).


25 posted on 11/26/2012 9:20:50 PM PST by vette6387
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To: vette6387

It would definitely be less


26 posted on 11/26/2012 9:22:59 PM PST by GeronL (http://asspos.blogspot.com)
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To: GeronL
Many folks create their own personal companies as IT developers for instance with just them as employees and then they negotiate contracts with "actual companies". this has a benefit for the employers as they don't have to pay severence, medical, insurance etc. and this has a benefit for the 'employees' as they get more money in hand

i didn't do it here, but most people seem to want to do this -- i can't understand it though.

27 posted on 11/27/2012 4:54:11 AM PST by Cronos (**Marriage is about commitment, cohabitation is about convenience.**)
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To: null and void
I’ve been able to document 483 companies that closed their doors since the election, with zero reported jobs lost.

It's the latest iteration of "new math"; if a job doesn't exist, how can someone be out of it?

28 posted on 11/27/2012 6:18:32 AM PST by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: MattinNJ

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.


29 posted on 11/27/2012 7:02:46 AM PST by Ghost of Philip Marlowe (Prepare for survival.)
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