In the rescue of two of its troubled banks – Banca Popolare di Vicenza and Veneto Banca, Italy decided to abandon the new European bail-in rules and instead “bail-out” these banks, at a cost to the Italian taxpayer of €17 billion. So much for new rules ensuring tax payers are never going to bail-out failing banks again! The European Union (EU) has once again failed to rein in bankrupt banks. Investors are watching and many are not impressed. The EU is no longer a bureaucracy, it has become an adhocracy that uses ad hoc rules which it makes up as it goes along. In the UK and the US, Labour leader Jeremy Corbyn and US Senator Bernie Sanders are suddenly the role models of the youth who are overcome with pangs of socialism. History suggests that every single truly socialist country has been an economic failure. Socialist nations make their people poorer, undermine democracy and endanger individual freedom. The poor in socialist countries have always done worse than they would have done under a capitalist economy. This lesson is sadly lost on the modern day youth in the western world. Frustration in the youth of today is understandable. People whose life hasn’t matched their expectations, often become alienated and angry. They were promised a better future and it looks anything but that.
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