If too hard-pressed, the Italian government could play the Glass-Steagall/bank separation card, as financial meltdown threatens.
Thirty years ago, on Oct. 19 1987, the biggest stock market crash in one day occurred on Wall Street. On that “Black Monday”, the Dow Jones dropped by a spectacular 22.6% in panic sales. Many articles were published on the occasion of the 30th anniversary, but virtually all failed to correctly answer the question generally raised: “Can it happen again?”
The past weeks have seen an outpouring of warnings that the transatlantic financial system is about to crash again, taking the speculative bubbles and toxic debts, which are much larger today than in 2008, down with it. From the International Monetary Fund to the Bank for International Settlements and Deutsche Bank, alarm bells have been set off.