5 ms·

The ripple effect of potential Italian bank defaults will ripple throughout the EU and the USA as well.

tiborsaas 7y ago
The ripple effect is already in place. Flybe airline just defaulted, I've read a post on Linkedin that a small catering firm is suffering in Hungary due to cancelled events and other companies in the food chain will probably suffer a lot more especially if they operate with a razor thin margin. After the human factor, the virus will hit the economy hard. It's probably only a matter of time till it triggers a serious recession. I'd really like to be wrong here.
- kjakm 7y ago
  > Flybe airline just defaulted Although they tried to blame this on Coronavirus that's a small part of it most likely. They nearly folded a few months ago and the government promised them massive tax subsidies which it appears they never followed through on. Regardless my point is that Flybe collapsing his little to nothing to do with Coronavirus. It just accelerated things ever so slightly.
  - toyg 7y ago
    I agree - Flybe is the British Alitalia, they would have cracked at the first crisis anyway. Still, I'm happy to bet that, by June, they will not be the only airline to have folded.
    - cycrutchfield 7y ago
      Most national flagship carriers will get bailed out, you can bet on that.
      - onlyrealcuzzo 7y ago
        Is this something British people support? Or just something you see as inevitable?
        cycrutchfield 7y ago
        Inevitable. At least in the US, the govt will certainly act to preserve the big 3.
- tonfa 7y ago
  Since beginning of March, Switzerland has 2.5k workers on part-time unemployment (a setup to use reduced working time instead of layoffs).
  - esarbe 7y ago
    What is that about? Half of the Swiss work force?
- oarabbus_ 7y ago
  Ripple effect has hardly started. It's v0.1, expect the ripples from China's Dec shutdown to hit late Q1 and throughout all of Q2, if not longer.
fspeech 7y ago
If the ECB forbears they can in turn forbear with their own customers. That is the only sane thing to do. This is not the banks' doing and they don't need to be disciplined at this particular moment.

The ripple effect is already in place. Flybe airline just defaulted, I've read a post on Linkedin that a small catering firm is suffering in Hungary due to cancelled events and other companies in the food chain will probably suffer a lot more especially if they operate with a razor thin margin. After the human factor, the virus will hit the economy hard. It's probably only a matter of time till it triggers a serious recession. I'd really like to be wrong here.

kjakm 7y ago
> Flybe airline just defaulted Although they tried to blame this on Coronavirus that's a small part of it most likely. They nearly folded a few months ago and the government promised them massive tax subsidies which it appears they never followed through on. Regardless my point is that Flybe collapsing his little to nothing to do with Coronavirus. It just accelerated things ever so slightly.
- toyg 7y ago
  I agree - Flybe is the British Alitalia, they would have cracked at the first crisis anyway. Still, I'm happy to bet that, by June, they will not be the only airline to have folded.
  - cycrutchfield 7y ago
    Most national flagship carriers will get bailed out, you can bet on that.
    - onlyrealcuzzo 7y ago
      Is this something British people support? Or just something you see as inevitable?
      - cycrutchfield 7y ago
        Inevitable. At least in the US, the govt will certainly act to preserve the big 3.
tonfa 7y ago
Since beginning of March, Switzerland has 2.5k workers on part-time unemployment (a setup to use reduced working time instead of layoffs).
- esarbe 7y ago
  What is that about? Half of the Swiss work force?
oarabbus_ 7y ago
Ripple effect has hardly started. It's v0.1, expect the ripples from China's Dec shutdown to hit late Q1 and throughout all of Q2, if not longer.

fspeech 7y ago

If the ECB forbears they can in turn forbear with their own customers. That is the only sane thing to do. This is not the banks' doing and they don't need to be disciplined at this particular moment.