It’s Monday and there’s madness everywhere. What else is new?

meskypesnip A moonshine of illogical lies has now so infected econo-political affairs in the US and Europe, the sunlight of reality is no more than a distant star on a dark night. A look at Clintonthink and Italian debt strategy proves the point.

The devious, self-excusatory illogic of the American progressive class knows no bounds. But that extra-special hypocrisy topping is nowhere distilled with more pride than in the Clinton family.

The Hillarybillies are rattled that, no matter how much invented ordure they pour on his head – and with Trump, who needs to invent it? – the Donald simply refuses to lie down and die.

Donald wants to build a wall to keep Mexican illegals out of the US. This Wall would make the Chinese version look like a pony-jump at a junior gymkhana. Anyone suggesting such a project is clearly appealing to those who like extreme sports, and have the brain damage to prove it. On the other hand, there are a staggering 11.4 million illegal Fernandos in America. But on the other third hand none of us have, the number has dropped by a million since 2011….the economy being in recovery, an’ all.

But still Trump keeps on coming. The New York Times referred to his campaign as ‘cratering’ over the weekend, but then that’s what the NYT does these days: lie non-stop. One of the historically more accurate polls came out last Friday to show the independent Republican candidate within 2% of Clinton in the marginal States.

So Slick Willy (who, in case you’d forgotten, isn’t the one running for the White House) has come up with a reason why all the illegals should be amnestied: you see, the USA needs a new immigration wave in order earn money to pay for the welfare given to, um, Americans who are out of work.

A few facts from the US Census bureau: Central American and Mexican immigrants are 51% of all US migration in an given year, but 73% of them are on welfare….compared to the roughly similar 30% among black and white communities.

Undeterred by this reality, the former President (who, in case you’d forgotten, avoided impeachment by a whisker in his Second Term) had this to say in his very own special feely-touchy boy am I a liberal way:

“All these old grey-haired white guys, how else do they think our Social Security is going to be paid out and our Medicare is going to get funded?”
This is a picture taken of former President Clinton last week:
It sort of begs the question, “How do grey-haired property-cheating philanderers think America is going to afford the social security for Mexicans who can’t find jobs because the recovery is jobless?”

As to how other old white guys think such things should be funded in general, well, rich old white guys like him could always pay far higher tax rates. But that would be off-message for Wall Street. So the Clintons won’t be saying that. That is, they will if challenged…they just won’t do it.

From one form of comical desperation to another. A piece featured by Reuters yesterday about the Italian banking crisis was so ridiculous, I just sat there smiling as I read it. It was, you might say, about an aspiration with no chance of being achieved….and that has always been a rich vein for humour.
This was the pitch:
You may have thought Italy needed a secret weapon, but no – what its banks need is a hidden front line. They need that hidden front line to hide away all the people slaving away in the trenches in a bid to sell or recover €360 billion of problem loans.
€360 billion is roughly what the entire Greek State and its banks owe. And the Italian loans are a problem in that they are non-performing…..another wonderful neocon euphemism that has trickled down into the media since 2008. This means that the loans may have been nailed to a perch and stuffed, but they will not be singing, recovering, returning or repaying. Not ever.
So this is what the plucky backroom boys are doing – according to their leader Luca Mazzoni, a Protos bigwig:
Mamma mia, siamo salvati!
Not quite. First up, 450 million is 0.18% of 360 billion. And that’s just to sell the loans at a 10% premium, which itself is at a massive discount to the original loan income. The State-sponsored bailout fund Atlante offered in July to pay 1.6 billion euros, or about 27 cents in every euro of face value, for a tranche of the bank’s bad loans repackaged as securities. Good luck with that one.
Second, this is what the Loan Elves have to go through in getting the loan information onto ‘easy-to-consult’ databases: documents associated with a single loan can take up an entire cupboard. It is not unknown for half a room to be filled filled with papers relating to just one loan. This is going to take months, if not years…..and time is the one think Italian banks don’t have: Monte dei Paschi, Italy’s third biggest Titanic, is under pressure from the European Central Bank to resolve its bad debt problem by the end of the year….that’s just over two months away.
Third, that doesn’t even begin the process of actually trying to get some of the borrowers to pay up. In Italy, that is an Ask so big, it has been asked by the people who control the size of Asks to only ask for the money if it has 24/7 protection from people carrying violin cases.
“Banks tread lightly because they don’t want to hurt their image or undermine traditionally close ties with the local community,” said Carmine Evangelista, CEO of AZ Holding, which specializes in recovering unsecured loans. When we get a new portfolio we make a first round of calls to let people know their creditor is no longer the bank. This alone normally prompts some repayments.”
Uh-huh. As in, how many? My sole Italian contact says 1 in 15 would be an outstanding result.
And finally, €200 billion out of the €360 billion are secured loans against a domestic property. “That’s good,” you might think, but it isn’t: there’s been a 15% drop in Italian house prices over the past four years. And legal proceedings to get secure loans paid take, on average, 7-8 years in Italy. The Spanish Cajah Cockup rides again.

The idea that the Italian banking crisis can be solved in this way is an insult to the intelligence of the average investor. But the neocon press will keep pumping out this
drivel, because without denial on a planetary scale, the penny will start to drop….as it did in the first two months of this year.
Boombust TV remains, in my view, the most consistently pernicious purveyor of altered normality. This morning’s line was “with QE tapering off, the inflation target relaxing in the eurozone, and Spain’s government impasse solved, there’ll be some growth in the region next year, and that’s why the Fed feels confident enough to raise rates in December. Also the the bad bank news is now priced into the markets….and fine, Renzi is going to lose the referendum but we knew that anyway”.
No mention of Italian Banks, Deutsche Bank, and the remaining stress-test doubts over several of Europe’s other core banks. No mention of the falling Yuan and bad debt problems in China. No mention of the continuing Japanese cul-de-sac.
Sins of omission and the triumph of fiction over fact.
So if you fancy a little more fiction, here’s a short story from yesterday’s Slog