Summary: Two months ago Monte Pachi, Italy's third largest bank failed a European stress test. Since then it's become increasingly clear something was profoundly wrong. Now we find out Paschi will likely seek a government bailout to save them from a total collapse. This is highly unlikely considering the hit bondholders would have to take, and EU leaders fear it may spark a run on several other Italian banks facing financial trouble. None of this should be shocking to you since we've been talking about the global banking implosion we're all facing. What not many people are discussion is what's going to happen when Paschi doesn't get its handout. The risk of what's called a bail-in is gaining popularity in certain intellectual circles. That's where the bank reaches into your account and deducts a percentage of your savings to help balance their ledger. It's criminal; it should be illegal and in any normal world where property rights and the rule of law were giving even a passing consideration it would be. But in these very dangerous times, it's not going to take much to push banks into a bail-in option and when they do they'll have the support of the government. *** More on the riots today as the National Guard was called in to assist Charlette police. One protester was killed, by another protester, during the evening festivities. Any semblance of an honorable and legitimate protest is long gone. Now we just have thugs on the street using this unrest to destroy private property and loot their own neighborhoods. *** Finally, We'll talk Hillary Clinton and her recent comments to the Labor's International Union. Apparently, she doesn't understand why she's, not 50 points ahead of Trump. I'm going to help explain it to her.
