From Michael Covel, Editor, Trend Following:
Brexit’s over… and markets are breathing a sigh of relief.
But they shouldn’t be.
That’s because a new crisis is looming in Europe…
The size and scope of the damage it may cause is inconceivable.
And if it isn’t contained quickly, it will destroy the European Union.
The Italian Job
The current European sickness can be traced back to an Italian virus…
As the Wall Street Journal reports…
In Italy, 17% of banks’ loans are sour. That is nearly 10 times the level in the U.S., where, even at the worst of the 2008-09 financial crisis, it was only 5%. Among publicly traded banks in the eurozone, Italian lenders account for nearly half of total bad loans.
The Italian financial system is on life support right now. More than $400 billion of Italian bank loans are worthless paper.
Of course, the first recommendation from