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Italy Next? €9.5 Billion Bill Auction 2 bps Away From Failure, 6 Month Bill Yielding Higher Than Spain's
All of Europe is scrambling to issue new debt and refinance in advance of what more and more are seeing as a credit crisis soon to envelop not only the European periphery but its core as well. We all know what is happening in Greece and Portugal. It appears Italy may be next: the country sold €9.5 billion in 6 Month Bills at 0.814%, up dramatically from 0.568% just a month ago, on March 26. What is scariest is that the Bid To Cover on the auction tumbled from 1.56 at the previous auction to a just barely above passing 1.02. At this rate Italy will be unable to find bidders for its next Bill auction. And if it can't sell Bills, it can't roll the easiest part of its curve. Also, unlike Germany, Italy does not have the "flight to safety" appeal. Keep in mind that Italy, just like Greece, dipped freely in the Goldman debt/GDP swap "adjustment" mechanism. We are confident that as contagion fears grip Portugal, Italy is sure to be next. And confirming that the market is seeing Italy as an even greater risk than Spain, the country sold 1.7 billion euros of six-month securities to yield 0.736%, up from 0.482 percent on March 23. On the other hand, Spain has to sell €150 billion in euros in 2010: it has so far only sold 26% of this amount. We wish them best as they scramble to fill the quota.
Elsewhere, the Netherlands sold 1.1 billion euros of bonds due in 2023 and 300 million euros of 2012 notes today as Business Week reports.
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And in other news, gold and silver prices and down today, so it is time to load up physical holdings with something of real value.
Chavez might take 20 tonnes of gold a year off the market:
www.commodityonline.com/news/Will-Chavez-give-gold-price-a-push-27667-3-1.html
It's actually getting pretty clear that the economy is going into deflation, so gold only has a way down. I wouldn't take the risk if I where you.
Because deflation does wonders for tax collection, and for issuing and rolling over increasing amounts of government debt...
Yeah, the radical fiat bugs are all over the place; "No, It's Deflation, Keep Your Money in Valuable Fiat Cash and Even More Valuable Government Securities!"
The contagion risk is becoming more apparent, even to the nearly dead. Drop your c*cks and grab your socks, Phase II is coming.
Clear? Like mud. It would go into deflation if the default were allowed to happen and those who took on bad debt had to pay the moral hazard penalty.
I can only see Benny's thesis playing out its prophetic diabolical fate to massive debt reflation with back door QE. In fact, the story is the same every day. The annoying thing is waiting for this insane theatre to reach the final act where people figure out all the munny magik doesn't create anything real.
troll alert. But being kind, if you have no clue what deflation is (decrease in the credit supply) then please go read at Mises.org. Most references are available for free.
And (sorry), with Queen Elizardbreath 1 just finishing and the QE 2 getting ready, plus all that "bail out the back door men" dealie, I just don't see your global credit supply "deflating."
Certainly you can show certain debt supply charts and we can have a few beers and laugh until we cry about what's not on those puppies.
Off topic: /oh please God 100x paper MBS / /no its too much/
Ho hum, more rumours of some seditious Axis of Evil member buying massive secret shipments of bullion.
Looks like AU and AG had pretty much recouped any "losses" by about 10:30.
It looks like gold just made a new high for the year...wtf?
Au up 11 bucks now, straight up traj
Bid to cover ~1 is great news as this means investors are using up their monies to buy bernanke notes...this is great news for US and market will rise in the later part of the day....
It is an indictment of the Obamanation that it sits on the sidelines while this fuse is burning down to the powderkeg. This so-called President is very good at kissing the butt of the likes of Ahmadinejad but as the EU sinks not-so-slowly into crisis, the President and his economic lackeys are nowhere to be found.
the dollar is no longer the reserve currency that can backstop the run on these countries, but even if it were, the emptiness of American economic leadership is having serious repercussions for individuals around the free world.
Do I hear the sound of dominos falling?
Any other countries want to ride the GS fuck-me-go-round?
Yes I believe you do.
They want the EU to be in turmoil, because guess where most of the money will run to when it needs a "safe place" to park. It will come to the US to buy the muni's and Treasuries that they issue every week.
ROFL, kissing MA butt because he's getting ready to probably attack Iran or help/allow Israel?
I bet you think Obama is a socialist, and that it is entitlements bringing us down?
Obama is a NEO-CON in democrats clothing. He's a corporate whore pretending to be for the common man. The neo-cons best friend is one Barack Obama. Only the idiots don't realize that.
He's everything a republican should want, pretty much. More trickle down theory, more austerity, more wars, more bs. Bush III or Nixon part VIII.
Don't forget, this healthcare (deathcare) bill was WORSE than the one the Heritage Foundation (yeah) suggested as an a faux 'solution' in 1990. But that doesn't count, it's socialism I tell you. No, it's FASCISM.
Corporations holding the hand of gov't is FASCISM.
Looks like to me the bankrupt-ness in America has more to do with THINKING, than economic leadership. Funny you do realize that 'leadership' and 'ideas' come from the same banksters robbing you blind? The 'tough choices' are what the BANKSTERS want you to THINK, but in reality, they're the ones who create 'credit' crises. They're the ones who say they can't print money for this or that. They're the ones who say that even though they can lever up 10, 100, infinity for casino bets, they can't make a loan to build something real.
It is also an indictment that our entire economic policy is the republican mantra on steroids. We're in this mess because we did EVERYTHING these aholes wanted. Congrats, your side was wrong. Too bad the dems jumped on board a sinking ship. But again, you were screaming at them to jump on for 40 years, and now they finally have. So congratulate yourself. You finally turned dems into repubs, at the exact moment that repubs ideology crashed and burned in spectacular fashion.
Obama needs to be impeached, but a republican isn't the answer. Their ideology was the problem, and they STILL won't admit it.
But at this point, since both sides are wrong, we should just figure out what's right.
Global glass/stegall to wipe out the fraud
...this in turns lowers debt levels and prices
....and stops the bleeding
Then we need Fixed Exchange rates, because without this, the monetarists can game the system. Of course there are other benefits. Like countries being able to produce for themselves what they need. But don't worry, not everyone can produce everything that they need for themselves, that's why we have TRADE.
American Credit system- so when the bankers say the gov't can't afford to take out a loan to build something, the gov't can go screw you, we'll loan it to these entrepreneurs ourselves.
Only idiots see the market as helping entrepreneurs get loans, and not actually hindering them. Under a credit system, a banker can't tell you no...because he would rather put the money in the carry trade or derivatives. Right now you have to COMPETE with everything else. Under a credit system, you need not compete with anyone to get the loan to actually DO SOMETHING, BUILD SOMETHING.
To use an analogy, blaming Obamanation for what the republicans did, is like the captain of the Titanic blaming the poor peasants sitting in their rooms for causing the ship to hit the iceberg. What obama is guilty of, is then running around and telling everyone that everything is fine. Obama is quite wrong, Obama needs to be impeached, but to put everything at his feet is retarded. This is the ramifications of REPUBLICAN ideology. One I've opposed based on common sense since almost birth. Obama joined your side, most corporate dems, joined your side. But again, only AFTER the titanic hit the iceberg. Plenty of blame to go around on both sides of the aisle. Plenty of jail cells for both sides. But you actually have to know the root of the problem, to place blame. Free market, lasseiz-fair, trickle down economics is a REPUBLICAN ideology. It failed. Obama is an idiot for following it. Realize it. Change it. But you won't see m(any) republicans try to discover the truth.
It's all socialism, and lack of making tough choices on entitlements, the bankers tell me so.
Just like Greece, Italy also has a large Olive industry.
You can't go wrong putting your money in that little piggy, as everybody will always keep on eating pizza's!!!
I fully expect the Wangerman to post any moment that there is nothign to see here.
A brain dead person could see that the slippery slope has opened up, and no one can predict where all of this is headed. But we do know what the IMF did in the not too distant past: set up a $500 billion rainy day fund. I'll take a wild guess they did not do this just to be prepared for some distant and highly unlikely possibility. Rather, the writing is on the wall, and it is plain to read: multiple sovereign debt crises in Eurozone on deck. Methinks it is the equivalent of our $700 billion TARP, and it will be called upon shortly.
Last man standing wins.
I believe the so called gold price is actually the GLD price. I think GLD price drives the gold futures price. This GLD price is not the price you would pay for the actual molecule. This is just my gut. Anyone recently buy an ounce of gold at the GLD price?
If you could eat debt, build a house with it, clothe yourself, then we'd have no problems. Debt is the most abundant thing he have. It dwarfs everything else. Think about that.
I think if a country actually saved up capital and ran a surplus they'd be villianized. Wait a minute isn't that what China did? Told ya.
Looks like the race to the bankrupt bottom is well underway.
Ciao Italia!
In Brussels, capital of Belgium, the government has fallen!
WAY TO GO EUROPE! HAHAHA, Suckers!
hahahahaha the US is in worse shape.
First to the window wins!
Rock, meet hard place. Everywhere.
ok.
ok.
I'll say it.
Historically it will be said that the slippery slope opened up in Olive Oil country.
/done/
you can thank me for taking the hit.
+10!
Wouldn't be funny if Italy's auction didn't fail because there were enough Greek investors flying to safety? For them Italy must be looking pretty good these days....
Just uploaded a Dow weekly chart showing a bearish broadening top pattern.
And Euro is breaking down now.
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