BI - Germany is Europe's biggest problem. With the caveat that this is typical idiotic Business Insider gloomery, and I'm only linking so I can criticize the Germans for their pig ignorance of economics, quote:
And at the heart of the looming issue for Germany and Europe is the Italian banking system.
Problems in Italian banks will "spill over into the Netherlands," Friedman said. "It's going to spill over into Germany. Germany is the new PIIG. Germany depends on exports, and its markets are drying up."
What? You mean it's not a sign of virtue and moral superiority to destroy your neighbours' economies, or a sign of cleverness to devalue your internal economy through labour repression to maximize exports at the cost of the rest of the EU?
Friedman believes that the problems in the Italian banking system will take Germany — the strongest economy in the eurozone — down with it.
Data released in late 2015 showed nonperforming loans at Italian banks totaled €300 billion, 17.3% of outstanding loans.
What? You mean the Germans don't understand that running a massive trade surplus within the EU destroys the peripheral economies, and when you destroy economies you also render their banking systems insolvent? Didn't Schauble get a B+ in Intermediate Macroeconomics in university? You're saying he didn't know this was going to happen? So, you're saying he's a clueless idiot, then? A clueless idiot who thinks he's a genius, exactly like your typical German?
For example, Germany's largest bank, Deutsche Bank, has an enormous amount of exposure to Italy, and so does the rest of Europe. Friedman thinks it will ultimately be Germany that has to save Italy.
And that will cost a lot of money.
Ha ha ha! No. Germany won't save Italy. Germany will force Italian depositors to get bailed in on a forced recap. The question is whether the Italians finally grow the balls to take back the Eurozone.
Germany will, however, bail out Deutsche Bank with taxpayers' money, because Deutsche Bank controls the CDU. And that will cost a lot of money.
Wake up Belgium, Holland, Denmark, Finland: your banking systems are next. And then you'll learn the price of arrogance.