that Italy was a “Core” country. Mine was a PIGS; it was not a PIIGS. It’s looking like I was wrong all along. The following slides tell the story. (Note: all prices have deteriorated since I got these graphs a few hours ago.)
This is the current 10-year. It was issued in February with a 4.75%
coupon. It’s now pushing 94, so a year and a half’s worth of interest is
thrown out the window. Can you say dog?
This is a seasoned bond. Notice that it lost 6% of its value since July
1. This is death to a global bond fund manager. They have to mark this
dreck to market. (The banks don’t; ha ha!)
You might say, “Who cares about the stupid bondholders”. The problems are much deeper than that. Italy is being forced out of the Short Term
capital markets as well. Look what has happened to six-month yields. If
we are not at the crisis point, we are very close, based on this:
Italian equities have just collapsed of late. Down 23% in the past sixty days. How would you feel if the S&P took a dump like that? Answer: Your confidence would fall and that would bring about a recession. That is exactly what is happening in Italy today. It's happening at lightening speed:
If you are an Italian equity investor (and believe in the buy and hold)
then this chart will really hurt. In the past few days we have taken
out multi-year lows.
The very rapid pace of this proves one thing. I was not alone in thinking that Italy was an “insider”.
A huge amount of money is being forced to rethink what is “safe” and
what is not. That this is all happening in the middle of July is not
helpful either. The whole country is about to go on holiday.
This last slide shows the pricing for all maturities of Italian debt.
Note that there is only one issue trading above par. This is all credit
spread deterioration. We are just a week or two before Italy gets locked
out of the capital market. I’m not sure than any of the global markets
are priced for that event.
Ambrose Evans-Pritchard at the Telegraph wrote about this today. I think he’s got it right.
Once again Europe's debt crisis has metastasized, and once again the financial authorities face systemic contagion unless they take immediate and dramatic action.
“Metastasized” is a horrible word. It’s fitting. I (now) doubt that the "immediate and drastic" action he suggests is needed is, in fact, going to happen. Gulp!
Please send me some blank email -- annonymous as you please -- so I can reply with an image that will make you fall to your knees in reverent worship.
That's what the (former congressman) Weiner wrote.
clever
+++3.14141592653589793238462643383279502884197169399375105820974944592
It's actually... 3.1415926535897932384626433832795...
You have one too many 14's in there. :)
shazaam!
no wonder my horoscope's have been off...this changes everything.
If it's that important, please share with everyone right away!
Mr. Cowboy,
Thank you for the enthusiasm...my feelings match your own.
I am, alas, a retard -- no tech know-how (I've had secretaries for the last decade or so). To make matters worse, my only recourse is, it seems, to sign up for some photobucket and paste a link -- how craven can you get; but those devils want me to join them -- Janus is very cautious about joining things. I'm still smarting over that time spent in the Democrat Party, and my membership in the GOP has given me chronic hemmoroids.
But, fret not, my friend. Someone will make great hay over this pic. I offer it to ZH first, and that's as it should be. Mr. Durden may reply at his leisure; but I'm anxious to show her off (her name is Odette -- Mme. Swann, to you and me) so not too leisurely.
Swan, swan hummingbird/
Hurrah, we are all free now
http://www.zerohedge.com/node/11119
email the picture to tips [at] zerohedge [dot] org...easy as that
Gentlemen of the gallery,
The image is out of my hands; it is now in stronger hands. The actual artifact is mine alone (I'm like daffy duck in the 'mine all mine' bit), and, be that as it may, I've tried to view it with some objectivity; you know, to see if it's just me. Brothers, it isn't just me.
Perhaps I should have waited till this rain clears in a few days, taken a shot in full sun out by the koi pond (right in front of the red jap maple would make an excellent tonal contrast), and done it proper justice. But man is only human; i just got her, and was chompin at the bit.
I like to build suspense; so I'll give Mr. Durden time to use it as he sees fit. Until then, my comments concerning Odette will remain opaque.
I say you're talking shit. Upload it on a picture server or something, try http://tinypic.com/
How about a hint? And by all means feel free to send it this way if you're itchy to show someone:
crystalmicrophone@gmail.com
If it's truly awe-inspiring, I'll see that it finds a large audience.
Ah, but Janus,
There are sites that will host your image without requiring membership:
http://www.google.com/search?q=anonymous+image+hosting&ie=utf-8&oe=utf-8...
One of your secretaries should be able to handle that in a flash.