Wednesday, July 27, 2005
antonio fazio and the public inutility
italy has a huge public debt. in order to achieve a sustainable debt development path we need to cut spendings. one of these expenses to cut could be the bank of italy. once upon a time it was an useful institution to set consistent monetary policies. but now? monetary policy is the same for the whole euroland and is set by a frenchman called trichet.
well, you could say, but we still need it as lender of last resort. yeah, right, lender of last resort! nevertheless we have one capital market now. spanish banks are owned by belgian ones which will be buyed soon by german ones. some week ago an italian insurance (generali) has bought a german bank (hypoverein). let's suppose that hypoverein fails. who will be the lender of last resort? bankitalia or bundesbank? or maybe for some secret reasons the bank of spain? that's a big mess: we need a euro-reform not a national bank!
bankitalia vs defence: nothing better to do, uh?
uhmm, there is the competition among banks to be overlooked! competition is competition and even in italy there is an authority for competition. it fits even for italian banks, don't you think?
there is no reason to mantain such a public inutility. there are even less reasons if you read from a newspaper that the governor was meddling with banks takeovers bid, taking side for an italian friend of his against the netherland's abn ambro.
we are a lucky country: a public enemy running a public inutility: that's a public adversity.
// posted by luca @ 9:01 PM 
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Wow! And I thought America had financial problems! Who is the Fazio character? I would have read the news story, but it's in Italian and I have no clue what it's saying.
What is Italy's national debt?
What is Italy's national debt?
italian debit is around 110% of gdp.
mr. fazio stems from a big nester family from southern italy. so you can imagine how competition-minded he is.
he is catholic and was going around teaching about economics and ethics and giving lessons on saint thomas acquinas.
he strongly supported the berlusconi government until one day he changed misterously his mind. critics suggest that he was promised something (like a post in the government) and then not given.
he's now charged for having helped a friend, owner of an italian bank, to buy another italian bank. he gave him green light despite not having the right financial presumptions.
that's italian live: obeying to friend's love rather than state law. in other words: mafia mentality
mr. fazio stems from a big nester family from southern italy. so you can imagine how competition-minded he is.
he is catholic and was going around teaching about economics and ethics and giving lessons on saint thomas acquinas.
he strongly supported the berlusconi government until one day he changed misterously his mind. critics suggest that he was promised something (like a post in the government) and then not given.
he's now charged for having helped a friend, owner of an italian bank, to buy another italian bank. he gave him green light despite not having the right financial presumptions.
that's italian live: obeying to friend's love rather than state law. in other words: mafia mentality
maybe mr. fazio needs to be reminded that we are to OBEY God's law over the "love" of a friend - a friend who can obviously make a tempting offer such as a prestigeous governmental post - isn't it just like the Devil to offer you the world for your soul and then not deliver!
i think it's a kind of hypocrisy of ours: preaching good and doing bad. andreotti was a many times prime minister, known follower of the curch and nevertheless he came to an agreement with mafia.
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