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Meanwhile In Europe...

Submitted by Tyler Durden on 07/08/2011 10:37 -0400

CDS
Italy

Remember Italy? That country we have been warning will be the next casualty as Europe's implosion tsunami sweeps everything in its path? Well, UniCredit is now down over 8%, well beyond the price it was halted at and falling. UCG Sr CDS 250/260; Subs are 458/478. ASSGEN next.

Elsewhere, Banco Populare was just halted and unhalted and is now down 6%.

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Fri, 07/08/2011 - 11:52 | 1436939 css1971

So... Today is a bad day?

Here's a question, how long does it take for reality to bite?

Fri, 07/08/2011 - 12:46 | 1437185 jowenchrist

What is reality, pray tell?

Fri, 07/08/2011 - 11:53 | 1436949 Clowns on Acid

Watch the Fed flowes...If the Fed :"bails out" the banks (European) again...USD goes to 1.5000 and Gold to 1650.

If Fed does not "bail out" EUR goes to 1.3000, Gold down for a spell.

Fri, 07/08/2011 - 12:02 | 1437006 freethinker4now

bring it on Babylon

Fri, 07/08/2011 - 12:11 | 1437038 Durchbruch

The gist is that if it were for Greece, Portugal, even Ireland, it could be a local crisis. But if Italy and Spain go belly up it's world crisis ... the 2009 plunge is nothing in comparison.

Fri, 07/08/2011 - 12:27 | 1437097 Quantum Nucleonics

And bringing this Italian miracle to the whole of Europe... your new chairman of the ECB.

Fri, 07/08/2011 - 12:31 | 1437107 Clowns on Acid

The "Stress test" in Italy was the imposition of the 5 day work week.

Fri, 07/08/2011 - 14:34 | 1437499 Zero Govt

that was for the 'official' economy ...an est. 40% of Italian GDP is black market. The wonderous aspect of black markets ('Govt free' capitalism) is it's all cash based, there's no Govt involvement and no bwankers (ie. no debt atatched).. everything official/legal in Italy will go down the toilet while the black market will hold up nicely (so much for the 'stability' Govt claims to provide with their laws, bankers, taxes etc)... proof once again you do not need Govt or the Judiciary/police/regulation to conduct nearly half of Italys business as they all add costs, complexity and preening useless morons to the mix, as well as the Govts approved bwankers who add credit/debt to everything so they can get their cut (parasitic margin) on all the action

...Everything Govt touches turns to Crap

Fri, 07/08/2011 - 12:32 | 1437117 M.B. Drapier

What is keeping you, Berlusconi? Hurry up and fire Tremonti so we can have Bini Smaghi in charge as Italian finance minister just as UniCredit crashes and burns.

Fri, 07/08/2011 - 12:40 | 1437128 hambone

Just watch the 10yr Italian and Spanish bonds...both have broken out of their recent trading ranges and are threatening to go hockey stick (like Greece, Ireland, and Portugal all have). Given massive deficit of Italy, high interest rates heading for 6% will bleed them something fierce (esp. while they borrow at 6% and soon 7% and then 10% to loan to other PIG countries at 5% interest).

Titanic has suddenly listed over onto it's side and trouble below decks is becoming obvious even to those in 1st class. Trouble is, now just like then, there are not nearly enough life boats...hmmm, walk to the life boats or do we run???

Fri, 07/08/2011 - 12:50 | 1437199 THE DORK OF CORK

Grandpa Jean Claude is looking a bit stressed .... not to worry we Irish are like the slightly retarded grandchild - we might be a little trouble but in the end we do what we are told.

www.rte.ie/news/av/2011/0707/media-2996991.html

Fri, 07/08/2011 - 14:05 | 1437471 Zero Govt

"Grandpa JC" ...you mean the senile old idealogist of the ECB? ...brilliant job "stopping contagion" ...marvellous.. give that Eurocrat a bullet

Fri, 07/08/2011 - 12:56 | 1437229 walküre

China will continue to offload US paper to buy Euro paper and assets.

Northern Italy has some of the best European manufacturing and global construction companies.

The Vatican sits in the heart of Rome. Vatican's assets make it one of the largest and wealthiest holding companies in the world. Correct me if I'm wrong, but Vatican owns more land than anyone or any other group in the world.

Voluntary and tax free contributions from the global fanbase of the Vatican are incredibly strong and growing. Vatican employs thousands of free workers or very low cost workers. The business model is ingenius. Anyway, that's besides the point.

Italy going kapput financially is never ever going to happen.

Buy the Italian bonds as they offer great returns and Italy will not default - ever.

Listen, the reason why the market is driving up the rates on Italian paper for example is because the fucking US paper is worthless and doesn't pay shit. But because El Bernanko cannot afford to increase US rates or the US debt pile implodes, the financial elite is looking for ways to manipulate other paper higher.

So, again it's the US's fault with a monetary policy that suits the US and fucks everyone else. When people anywhere in the world need to pay higher taxes and their country is paying higher interest rates to raise capital, it is because the US IS BANKRUPT and investors are driving the rates higher where they can.

Who is buying US debt other than the FED? The US financial system is one gigantic huge circle jerk w/o creating anything of real value.

Fri, 07/08/2011 - 13:11 | 1437287 Mark Noonan