ad

Italian mortgage payments suspended

L

Longterminvestor

Administrator
D

diyhelp

Active Member
This was inevitable otherwise the Italian property market would have collapsed, banking crisis, contagion and more - but withdrawing liquidity from the banking system is also a huge huge gamble. How does the EU trade out of this one? Even if they manage to stem the wild fire of coronavirus in Italy it will simply flare up in another country.
 
F

FWL

Member
It looks as though the UK will follow now that sporting events have been cancelled and the likely knock on effect other areas of the economy. The government policy of self isolating is perfect as far as I can see - if we isolate everywhere then companies will fall, supply chains will fail and medicines and food will be in short supply. We need to keep the economy going as much as possible.
 
P

PostBrexitInvestor

Member
It will be interesting to see how the worldwide, and national, financial systems cope with the short term lack of income/liquidity. From what I have read over the years, the Italian government was already on its financial knees.
 
D

diyhelp

Active Member
The EU seem to be at odds with each other about how to tackle the problem and interestingly the IMF have said it is not their duty to bailout economies - that is the role of governments. Disagreements already......they need to pull themselves together and show a united front. The coronavirus is an issue which needs addressed but it is not the end of the world like many are suggesting.
 
P

PostBrexitInvestor

Member
Politicians right across the globe, even in the same political party, are fighting like ferrets in a sack. There needs to be united front against the threat of the coronavirus and in the medium to long term, how the worldwide economy can again be reinvigorated. They managed to come together after the 2008 financial crisis, surely it is not such a tough ask to do the same again?
 
L

lookinginvest

Member
Interestingly, despite the fact that Italy is effectively bankrupt (and has been for some years) the EU does not seem overly concerned about the mortgage holiday action by the government. Is the EU in denial?
 
Top