Italy Crashes Most In Six Months Despite EURUSD Strength

Tyler Durden's picture

Wherever you looked today in Italy, shares were halted. From Saipem to Seat and From Banco Popolare to BMPS, individual stocks fell between 5% and 45% in some cases. Spain also fell alongside its incorrigible risk-on peripheral neighbor as dividend suspensions, outlook cuts, rating downgrades, and a growing concern about the banking system's legitimacy wear on sentiment. Italian sovereign risk was largely unchanged but as the US opened it started to bleed wider - but in general bonds ignored the stress in stocks. FX markets also were un-phased as EUR continued to test higher. CHF did, however, strengthen notably (against the USD, EUR, and mostly against the JPY - up 28% in the last six months!). The CHF strength did nothing for demand for Swiss rates though as they pushed higher to 10-month highs. The big problem though lies in credit. Just as in the US, credit markets in Europe are massively divergent from stocks' exuberance - and today's surge in Europe's VIX also echoes the disconnect we are seeing evolve in the US. Things are shifting...


Ugly day in Italian stocks...


CHFJPY this how the SNB is doing it?


As Italy played catch-down to Spain on the week...


but it is credit markets that are starting to show signs of stress...


Charts: Bloomberg

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BKbroiler's picture

mamma mia! atsa matta wich u stocka market?

camaro68ss's picture

bulish, Should be good enought to push DOW over 14,000 today.

I would say sarc/ off but we all know its the truth.

gjp's picture

The Italians should just give up on their country and put all their money in AMZN.  It's the way of the future.  And you don't even have to turn a profit to make money!

bonzo112358's picture

This will somehow be spun into a positive.  But can't help self...$3 vxx march call spreads for $0.55.  Why can't I stop?  Help me!

InvalidID's picture


 Bullish suicide pills!

derek_vineyard's picture

party is on tyler.   there is no bad news.  come join MDB and the rest of us!

americanspirit's picture

The Italians have had currency-sniffing dogs at their borders for months - they knew that total collapse was coming. Just like an earthquake begins miles underground and it takes a bit of time for the cracks to appear on the surface, the foundations of Italy's economy shifted irrevocably a while ago and the real financial fissures are just beginning to open on the surface. Whole cities will be swallowed shortly. That Chinese sinkhole is nothing compared to what the Italians are facing.

waterwitch's picture

Wonder if those currency-sniffing dogs can smell gold?

disabledvet's picture

But yields have plunged! We have victory comrade Capitalismo! I mean seriously...this is TEXTBOOK Great Depression. The US (in my view) continues to skate past it because so much productive capacity is being imported to here...not the least of which is lower gold prices (save for today interestingly.) so just how much debt is owed to that declining capital base called gold again? I mean NO one is lending over there.

thexperience's picture

"Lets go zirpin now, everybodys learning how, come on baby zirp-it with me!"

Beach Boys - Bernanke mix

ReptilianSlaveMaster's picture

Today's sell off made me feel like it was 2008. we may of made a multi year low right here. just BTFD

Dewey Cheatum Howe's picture

Retalliation for this by the squid?

Bersani attacks Goldman Sachs

LongSoupLine's picture

Good thing we have that big fucking ocean between us for protection.

Fuck you Bernanke and MSM. Fucking dicks.

youngman's picture

Its wierd nothing is moving in the bond markets....????  Stocks and curriencies are moving...but bonds are dead....except in Chicago......

Freddie's picture

From 2012 - Mafia now biggest bank in Italy

Oddly they are much cleaner than The Ben Bernake, Oba-MAO, The Goldman Sack, The JP Morgue and the Goldman super Marios (Draghi and Monti).  F Goldman!  F the US Chicago Democrat Party Mafia

Today the mafia is not only the biggest bank in Italy– it is the country’s single most profitable business as well, thanks in large part to crippling national debt and rampant government corruption.

DoChenRollingBearing's picture

+ 1

Very interesting link Freddie.

The 'Ndragheta (sp?) is arguably more powerful (in Italy) than the Sicilian mafia or the Neapolitan Camorra.  The 'Ndragheta is from Calabria (S Italy) but they have apparently taken over most of the underworld of Milan (!).  We have a friend from Italy who is well-connected there and tells us this is TRUE.  Italy is corrupt from the top (inc. the Milan stock exchange) all the way down to the bottom...


The illegal drug industry is BY FAR the biggest single industry in the world.

Freddie's picture

Yup. I remember one of those mob shows in YouTube.  I think they interviewed Bill Bonano, who comes off well spoken, charming and intelligent.  Joe's son. The US Mafia had avoided drugs but the money was astronomical.  The guy in Silicy Toto Reina or something was the big cocaine guy. 

Who helped arm the drug cartels in Mexico?  Hope & Change.

Actually - since Poppy Bush til now I think it is all Mena, AR aka drugs.   I knew it was all BS when Poppy Bush adopted Bill and Hillary when GW was in office.  Bush, Clinton, Bush, Oba_mao.  All the same people.  All CIA too.

I think Reagan was the last semi-free election.  And the black hand tried to taken Reagan out.  Probably from "I paid for this microphone! in NH.

POppy was humiliated.

The Mafia. Another reason why Northern Italians hate the south. 

Italy is totally corrupt but the U.S. is no better now.  Chicago is among the worst in the world.   Sickening.


Clycntct's picture

Not being smart I don't want to challage that statement but I'll add to what we do know. Perhaps bigger is the fed. Notice no cap.

Magic is big business around the world. And even the Mob has to pay up.

"Transposition, sleight of hand magic, a performer appears to make two different objects ([usually] coins or cards) switch places with one another faster than physically possible."

SAT 800's picture

Nothing's moving ! WTF. Italy's falling apart and the freeking EURO went up today. UP !. I wish nothing was moving.

NaiLib's picture

"_Despite_ Eur strengh"??

Ghordius's picture

+1 I was wondering if I was alone in this

tahoebumsmith's picture

Kind of feels like Sept 2007 to me. Remember the Dow was at 14,000, the subprime crisis was a non event, there was complacency everywhere? And then kaboom. The only problem this time around is we are 8 TRILLION dollars deeper in debt, the FED has expanded it's balance sheet from 800 billion to 2.3 TRILLION with an additional 8 TRILLION in off balance sheet loans floating around the globe. The too big to fails that caused the crisis are much bigger now, Europe is in total freefall even though the ECB has pumped trillions of Euros into that shit hole and the working class have become the global serfs to the banking cartel. This time around we will not have the resources nor the support to cover up the financial ponzi collapse. It will be total chaos for most, the so called recovery will soon become everyone's worst nightmare. Even a sixth grade math student could figure it out, all you have to do is be able to add up the numbers before you realize that this so called recovery is simply unsustainable considering that GDP across the globe is shrinking as the massive debts keep piling up.

jubber's picture

BTP down 130 today pretty big move

Confundido's picture

Despite EURUSD strength? I would say thanks to EURUSD strength.

SAT 800's picture

EUR/USD "strength" very irritating. To me. The Goddamed Thing, (Euro, whatever that is), went up again today; and after I shorted it yesterday! I tell you, sometimes people just think they're going to get away without giving me their money; but they won;t. I'm prepared to wait until Eur 1.37; and then commit suicide; that'll make 'em feel bad.

Confundido's picture

$1.37 your stop loss? This shit can go on forever. The eurokrats can make millions more unemployed before they hesitate. Unless the peoples of the periphery rebel, nothing will stop this mess. And I see them pretty happy watching their weekend football games. Not going to happen...

steve from virginia's picture




Bank failures ... France, Spain and Italy ... check!


Panic by central bankers, unlimited credit provision ... check!


Failed austerity/'pro-growth'/pro-consumption fiscal policies everywhere in the world ... check!


Brent crude @ US$114 ... wowee zowee! Up from $108 a few weeks ago! For crude to rise, some other economic factor must be defunded ... this is a consequence of peak oil. Credit added to crude production after the peak results in LESS crude not more. Furthermore, both credit and crude cost more per each unit of credit ... in every currency! We are trapped by the quicksands of diminished returns.


What is being defunded? Medical care? Schools? Pensions? How about food and water? Something has to be sacrificed so that people are able to drive cars! Sacre Blew! Auto executives uber alles!


Crude will rise to around $120 ... then ugly noises will emerge from China, Japan, Korea, the EU, UK and elsewhere ... signaling the end of the latest 'green shoots' period and return to recession.


Because central banks are currently over-committed there are few monetary tools remaining to prevent/forestall long-overdue deleveraging. 


It looks that attempts by the new government and the central bank in Japan to escape 20 year deleveraging cycle will accelerate it instead.


$120 Brent is the new $147 ... the world becomes poorer with the passing of every single day. To buy fuel and to aimlessly drive cars in circles from gas station to gas station ... for fun and nothing more ... is bankrupting every person and every business ... and every government ... in every country.


The process of bankrupting has been put off since the fall of Lehman Brothers but this cannot last much longer. Either the cars go ... or everything goes including the cars.



falak pema's picture

the word bankruptcy contains a root word : bank...

your whole spiel is about banks...

ask yourself if the world had other issues at stake than what happens in banks wouldn't it be a different world?

Why has the word BANK become so important in this world; and as corollary, WHAT COUNTRY HAS MADE BANKING THE NAVEL OF CIVILISATION in 20th century?

When you have an answer to those questions we may be able to move out of this maze of Theseus; before Santorini explosion destroyed Knossos and Crete! 

Aurora Ex Machina's picture

Interesting piece I spotted:

According to Ferdinando Imposimato, a former prosecutor that investigated the Italian Mafia who is also an honorary president of the Italian Supreme Court, during a speech he delivered at a book launch revealed for the first time that the Bilderberg Group were responsible for massacres of political activists during the seventies and eighties in Italy. [Source]

Although the source is a bit flaky, it appears that the old boy is going after the ex-Gladio movers & shakers, or at least selling his book about it (and why, at his age, does he need the revenue?). The Big B Boys have been meeting in Italy recently (check out December) and so forth; I smell a real power struggle going on behind the espressos.

~Tangent. If you're so disposed, do a bit of poking around the Vatican, tax and Church properties in Italy, and the Government's grumbling over it. If one believes in prophesies, the next stage is making sure the Vatican gets nailed. Plenty of ammo out there surrounding the ultimate taboo crime these days.... and what better time to require the take down, if not economic desperation coupled with moral outrage?


Meta-meta: I'm sure that Bunga-Bunga is calling in a lot of favours over the Economist hit-piece, and is willing to step-it-up. I remember his "cuckold horns" finger gesture if you don't. Pity the Green party, if nothing else, and remember that Reuter's backed pitch by Monti about "cutting down the extremists on the left and right".

And, of course, no-one has even mentioned that most civilised of things, organised crime.