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Citi: "This Is The First European Election In Which Voters Didn't Do The Right Thing"

Tyler Durden's picture


When a note by a Citi FX strategist begins with the following proclamation endorsing outright fascist despotism, you know it's going to be good: "This is the first European election in which voters didn't do the right thing." Perhaps if Citi would be so kind to overrule the democratic vote, in which 55% or the majority of the people voted against the "right thing",  and impose its own unelected Italian dictator, just like Goldman did in November 2011, that long EURUSD call would be happier? Then it only gets better: "Elections are more problematic than market scares or sentiment shifts as they can't be undone by printing monry" (sic). True: some things outright money debasement by central banks can't buy - for everything else there are Siberian Gulags. And the absolute punchline: "Still the outcome does not seem so dire that a bit of growth and ECB flexibility could not turn it around." Why yes, all Europe needs is a "little growth" obviously in lieu of lots of growth, but frankly it will settle for any growth - something it has been unable to do under the wise tutelage of the banker-dominated oligarchy for the past four years, as for that little "ECB flexibility" - wink wink: just where would you like those Euro Stoxx Steve?

From Citi's Steven Englander:

1) The bad news first. This is the first European election in which voters didn't do the right thing. Instead they gave surprising support to politicians who reject austerity and, in some cases, the euro. This could become a major problem if it proves contagious. The feel-good from the runup in Italian asset markets was not enough to offset the feel-bad from austerity, low growth and unemployment. If all it would take to fix this was an ECB rate cut, they would do so immediately, but euro zone politicians may need to ease fiscal constraints  and find ways to quickly stimulate growth. Elections are more problematic than market scares or sentiment shifts as they can't be undone by printing monry. Still the outcome does not seem so dire that a bit of growth and ECB flexibility could not turn it around.


Outcome for the euro - negative in short term and maybe further to go, but considering that euro spent months happily over 1.40 with Berlusconi as PM, this is a set back but not a catastrophe. 


2) JPY - collateral damage and position cutting. Its not as if any new JPY information came out in the middle of the Tokyo night when markets went pear-shaped . Yesterday's high to low range in EURJPY touched seven big figures. So there were either weak JPY shorts or EUR longs. The BoJ's mistake in 2009-2012 was letting bad news elsewhere lead to yen appreciation, a double hit. If the new policymaking regime is different, it will be because it will resist JPY appreciation on bad news.


Outcome for JPY - temporary JPY plus,  but hard to see the incentive for the Japanese government to do anything but talk yen down and Nikkei up again – USDJPY buying opportunity.


3) Monday’s shock helps Fed Chairman Bernanke Tuesday as these developments argue that the world is not a safe place and that a QE buffer against negative economic or financial shocks needs to be maintained. Bernanke will argue for Fed exIt (Fexit?) as soon as possible but not necessarily anytime soon.  Very short term I think this will give markets a boost, but data in following weeks are a risk.


Outcome for USD – Fed Chairman will likely try and talk risk appetite back into market, unwinding USD gains. The problem is that once we get past his testimony we may face some weak economic data and renewed concern that fiscal tightening is having a more negative effect than is priced into markets.


4) Positions were big drivers and concentrated positions were hit, while positionless but risk-correlated AUD and NZD were almost flat versus Friday. JPY stronger on JPY negative news.  This looks like a positioning and panic induced shift rather than a real risk sell-off. The Italian election is a definite EUR negative but other than with respect to the EUR, the major impact was in markets that were heavily positioned, not where there was bad news. Hence I think that dust will settle slowly in Europe but more quickly elsewhere – GBP, JPY weakness will resume.

* * *

Let's see what else could we add here:

5) If one ignores the 55% of the population that voted against the banker puppets in this election, then Monti and Bersani obviously get 100% of the vote. So you must buy EURUSD

6) Thank you docile little Greeks for doing "the right thing" in 2012

7) Remember "those" European "elections" in the 1920s? They actually were not that bad after all...

* * *

That smell? That's the stench of panicky desperation

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Mon, 02/25/2013 - 21:26 | 3276076 Shell Game
Shell Game's picture

...and the public buying 100 billion rounds should give you a clue at to the response. 

Mon, 02/25/2013 - 22:21 | 3276254 otto skorzeny
otto skorzeny's picture

the little brown truck is bringing me 1000 more of the commie caliber on the morrow

Mon, 02/25/2013 - 23:25 | 3276459 A Nanny Moose
A Nanny Moose's picture

We love logistics.

Mon, 02/25/2013 - 23:51 | 3276518 FreeMktFisherMN
FreeMktFisherMN's picture

the USPS evidently doesn't.

Mon, 02/25/2013 - 22:22 | 3276259 bigkahuna
bigkahuna's picture

Yeah, people are getting ready for some shit. What is really wild is that the shelves have been bare for like 6 weeks. 

Mon, 02/25/2013 - 22:24 | 3276260 newengland
newengland's picture


Mon, 02/25/2013 - 23:22 | 3276455 Oldballplayer
Oldballplayer's picture

The first thing a lot of folks do when a gun is pointed at them is shit their pants.

Real men will get over it and fight with shitty trousers.

Most of the people on forums that write about what they are going to do will run or hide.

Those of us who have shit our pants, and fought....well, we don't generally get too vocal about it. We know what shit smells like. We don't want to smell it again. We don't like how it feels. We don't look forward to it.

But we know its just shit. And we will work through it again.

Tue, 02/26/2013 - 00:01 | 3276537 dtwn
dtwn's picture

Yup.  AIM Surplus got a container of 5.43X39 in a couple weeks ago.  1.5 million rounds sold out in 1 hr 23 min.  Just one store on one day, one caliber.  Also google 'ammo whore', see what the boys at ar15 . com have been accumulating.

Tue, 02/26/2013 - 12:05 | 3277806 e-recep
e-recep's picture

damn, i wish i was an ammo producer.

Mon, 02/25/2013 - 20:26 | 3275882 Frastric
Frastric's picture

The corporate fascists finally show their true colours... The bastards.

Mon, 02/25/2013 - 20:28 | 3275889 davidsmith
davidsmith's picture

No, Englander is from the group which does business with fascists--after they've determined that none of their chums from Choate are going to be running things.

Mon, 02/25/2013 - 20:38 | 3275934 DoChenRollingBearing
DoChenRollingBearing's picture

Andover, Exeter, St. Paul's?

Mon, 02/25/2013 - 20:43 | 3275952 SMG
SMG's picture

Don't you dare not elect our technocrats peasants.   Now we will show you the price for defying us.

Mon, 02/25/2013 - 21:58 | 3276176 milanitaly
milanitaly's picture

I like the smell of napalm in the morning.
We realize your dreams. V for revenge

Mon, 02/25/2013 - 20:27 | 3275883 davidsmith
davidsmith's picture

Did Englander go to Dartmouth and is his nickname Binky?

Mon, 02/25/2013 - 20:42 | 3275948 DoChenRollingBearing
DoChenRollingBearing's picture

Harvard, Yale, Princeton.  In that order.

Mon, 02/25/2013 - 20:50 | 3275972 McMolotov
McMolotov's picture

"Evidently Mr. Englander's an educated man. Now I really hate him."


Tue, 02/26/2013 - 01:42 | 3276701 Rogue Trooper
Rogue Trooper's picture

I doubt Mr. Englander will have an allocated seat in the Helicopter when the exit plan is initiated.... useful idiot.


Mon, 02/25/2013 - 20:27 | 3275886 ar01
ar01's picture

"We may face some weak economic data and renewed concern that fiscal tightening is having a more negative effect than is priced into markets"

You mean the markets aren't efficient? What the hell am I supposed to do with my econ textbooks now? 

Mon, 02/25/2013 - 21:05 | 3276022 disabledvet
disabledvet's picture

Yeah no shit. "this is the same Citigroup that paid a single trader 100 million to soar oil prices in the middle of a war" right? And now they're long euro "which is getting obliterated by high oil prices"? Hmmm. I wonder who's on the other side of that trade. If it's not Italy anymore I say GO ITALY! I things these folks are running out of OPM by the TRILLION now...when will they start talking in terms of building relationships...ahem...POSITIVE relationships with...you know "nation states and shit." indeed "you can't make this stuff up."

Mon, 02/25/2013 - 21:40 | 3276110 newengland
newengland's picture

Zionists have gone batshit crazy, and their paid selected pets in banks and government are out of their tiny minds, and out of control.

Zionism is NOT the choice of most jews, or anyone else.

Goldman Sacks, JP Morgue, money launderers like HSBC and others in every big nation bank are nothing more than a criminal syndicate of gangsta bankstas.

The 'educated fools' and 'useful idiots' as Zionist's Lenin described them.

Mon, 02/25/2013 - 22:30 | 3276274 bigkahuna
bigkahuna's picture

The zionists have always been crazy. They are just as crazy as the kkk, la raza and the black panthers. Its who they are. And like you said, there is quite a distinction between zionists and Jewish people.

Mon, 02/25/2013 - 22:39 | 3276296 newengland
newengland's picture

I get fed up with people likening all jews to Zionism. Like all christians are the same? Anyhow, must stay on topic and not divert attention from this story. I am one of those Jesus types; that good jewish boy who threw the moneychangers out of the Temple.

Zionism is wrong for jews most of whom do not agree with it, and everyone else,  which is probably why it collaborates for money with Islamists and Communists, imo. War, famine, money, power - that is their socipathic agenda.

Best wishes to you and yours.

Mon, 02/25/2013 - 22:54 | 3276362 bigkahuna
bigkahuna's picture

These people who confuse the two often have simply not done their homework. Either that or they are disinformation agents.

Likewise, Best wishes!

Mon, 02/25/2013 - 23:15 | 3276427 newengland
newengland's picture


Mon, 02/25/2013 - 20:28 | 3275887 Meatballs
Meatballs's picture

Stenchy, Bitchez!

Mon, 02/25/2013 - 20:28 | 3275892 Number 156
Number 156's picture

The smell of fear.

Mon, 02/25/2013 - 20:35 | 3275920 nmewn
nmewn's picture

Cool ain't it ;-)

Mon, 02/25/2013 - 21:02 | 3276016 Teamtc321
Teamtc321's picture

"That smell? That's the stench of panicky desperation"


+1000 Tyler

Mon, 02/25/2013 - 20:28 | 3275893 Tank_
Tank_'s picture

Was "monry" making fun of our Chinese-speaking friends?

Mon, 02/25/2013 - 21:26 | 3276079 Poor Grogman
Poor Grogman's picture

Leave annoying mouse out of this...

Mon, 02/25/2013 - 20:30 | 3275902 davidsmith
davidsmith's picture

In any event, Stevie is just another name to put on the proscription list--you know, $50,000 for evidence of his death.

Mon, 02/25/2013 - 20:31 | 3275905 Ignorance is bliss
Ignorance is bliss's picture

To Keloptocratic Fucks,

Fungool MF !!!!

From Italy with Love

Mon, 02/25/2013 - 20:31 | 3275906 LongSoupLine
LongSoupLine's picture

Fuck you citi bank you fucking overleveraged fucking bad paper stuffed ass licking fucks. Go fucking jump off your building you Bernanke ball sucking overdressed fucking used car salesman.

Mon, 02/25/2013 - 21:12 | 3276039 gmrpeabody
gmrpeabody's picture

I see Soup's feeling fine...   ;-)

Mon, 02/25/2013 - 22:06 | 3276169 AssFire
AssFire's picture

Fuck ya!, He's fuckin-doin' fine as fuck!

Mon, 02/25/2013 - 22:04 | 3276192 Room 101
Room 101's picture


Fuckinaye LSL, that was fucking beautiful, man. Pure poetry.


Mon, 02/25/2013 - 22:46 | 3276326 newengland
newengland's picture

I get the impression that you are unhappy with the bare faced lying criminal banksta gangstas.

Good to see someone speak to  Jamie Dimon the banksta gangsta in a language he understands  - as he is a coward who should be slapped down...like Corzine, his bitch. Both mommy boys. Citi is a petty errand boy by comparison.

Mon, 02/25/2013 - 20:31 | 3275907 IndicaTive
IndicaTive's picture

This is the first European election in which voters didn't do the right thing."

Never heard that before.

Mon, 02/25/2013 - 22:25 | 3276262 otto skorzeny
otto skorzeny's picture

the germans did the right thing in '32

Mon, 02/25/2013 - 23:02 | 3276374 newengland
newengland's picture

King maker hedge fund muncher George Soros chose O'bomba for the Democratic race. George Soros of the Socialist Internationale was a boy when his father gave him to Nazis and he saw confiscation from jews.


Zionists are a freak communist socialist international financier conspiracy of pschopathic money and power who have no allegiance to any family or homeland, but want to dominate all. And that is why they conspire with the House of Saud and that hateful medieval religion of mysogynists, sodomites and money grubbers.

Rootless cosmopolitans liked Hitler, as did all major banks...until he failed to deliver their wishes: the new wold order. Zionism.

Mon, 02/25/2013 - 23:08 | 3276403 newengland
newengland's picture

Amusing, innit. European voters previously voted for the EUSSR...err...the EU. And now they get to see how horrible it is to be ruled by thieving socialist communist social engineers, and Italy rebels against that.

O'bomba and Robney are no different. Tax thieving whores.

Mon, 02/25/2013 - 20:32 | 3275909 PaJoad
PaJoad's picture

I love the smell of paniky desperation in the morning.

Smells like...victory.

Mon, 02/25/2013 - 20:33 | 3275914 nmewn
nmewn's picture

I'm not sure Duce II Bunga has the same panache...but I'm rollin with it...lol.

Mon, 02/25/2013 - 20:34 | 3275915 Frank N. Beans
Frank N. Beans's picture

this was the funniest thing i've read all day


Mon, 02/25/2013 - 20:57 | 3275925 newengland
newengland's picture

The Fight Club - gotta love it. Nailed it again.

If the people are to walk in rags to the gallows, then  they may as well protest in doing so, rather than die like helpless sheep, knifed by the Machiavellis of this world.

No wonder that the kosher mafia cloaks itself in Les Miserables re-makes, Argo...and more cheeky in-your-face  Paperman. Geddit? They are hiding in plain sight, and the public applaud the circus.

Remember this: gangsta bankstas, the Vatican and their paid pets in Hollywood and government do hate you very much, but want you to vote for them, volunteer to be slaves.

That is the unvarnished mission statement of the Trilateral Commission which wants a technocratic new world order aided by academics and its 'inner party' of bureaucrats: the 'educated fools' and 'useful idiots' that Lenin described.

Lenin funded by Zionists. Communism collaborating with Zionists. Zionism is bad for jews and everyone else. Goldman Sachs, JP Morgue and all the other filthy new world order tribe love money and power, 24/7, color blind - and have no heart for ordinary people or honest, sound money and commerce.

Long live the Italian people and true culture. To hell with the collaborators of gangsta bankstas.

Mon, 02/25/2013 - 21:34 | 3276105 AllWorkedUp
AllWorkedUp's picture

Tried to up vote you but for some reason couldn't - as usual. Good job Italy. Fuck the technocrat banksters. Take your country back. Wish we had the common sense, intelligence and integrity to do that here in the U.S too.

Mon, 02/25/2013 - 20:36 | 3275927 Everybodys All ...
Everybodys All American's picture

A sign of better things to come? We shall see. Hopefully, people all over the globe are waking up to the ridiculous insanity the central bankers and government bureaucrats are putting us all through. I think waiting for them to burn in hell is no longer a choice.

Mon, 02/25/2013 - 22:38 | 3276304 bigkahuna
bigkahuna's picture

This seems like the first round. If the banksters don't like the results, they are fully capable of changing them (Diebold). I hope that the statement the Italians made stands. Perhaps we could all take a lesson from them.

Mon, 02/25/2013 - 20:36 | 3275928 Water Is Wet
Water Is Wet's picture

What a twat Steven Englander is, that in the dictatorship he runs in his imagination, his preferred outcome ignored the will of the people.  You are a twat Steven Englander, and you don't deserve your "monry", you fucking retard.

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