This page has been archived and commenting is disabled.

Bridgewater Asks "Could Italy Blow Up The Euro?"

Tyler Durden's picture





 

Judging by the purchasing frenzy of Italian bonds today, most of it emanating out of Japan which after last night's epic snafu involving JGBs and the double halt of bond trading which may have spooked the "New BOJ-frontrunning Normal" Mrs Watanabe, not to mention Albert Edwards' recent rekindled love affair with the Mediterranean country, one may have left with the impression that all is well, and Italy is "safe." Not so fast: according to the world's biggest hedge fund (after the ECB and the NY Fed of course), Bridgewater, whose daily letter today is titled "Could Italy Blow Up The Euro?" things in Italy are hardly as rosy as market conditions make them appear (although as the BOE itself admitted, any link the policy vehicle known as the "market" may have had with economic fundamentals is long gone), and in fact may be set to get far worse.

Some of the key highlights:

Economic conditions in Italy are as depressed as they've been since the end of WWII, the economy is still contracting, Italy's banks are in terrible shape, private sector lending is very strained, and the ECB's policy is not resolving the problems. As is typical in countries enduring this level of economic pain, the political situation is starting to get pretty chaotic. Bersani, the top vote getter in the recent elections, has been unable to form a government, new elections this year are increasingiy likely, and recent polling suggests a dead heat among Bersani, Berlusconi and the anti-establishment party of Grillo. Surge in support for Grillo creates a risk because it is not entirely clear what he would do if he came to power. He has made a clear promise to put the euro to a vote and generally thinks that the European fiscal and monetary policies have been a bad deal for Italy. Obviously, an attempt to revisit those policies by a country as systemically important as Italy could destabilize things fast, and the risk of a radical outcome is growing. And over the past few months there are indications of that risk getting priced in and putting pressure on Italy, particularly on its banking system. Italian banking spreads are up; there has been a modest pullback in banks' wholesale funding, a modest increase in their ECB borrowing and no bond issuance. So far, the Italian sovereign has not come under as much pressure. Spreads have risen a bit, but issuance has been steady, and the government is so far meeting its needs for the year. However, there are some indications that things are getting tighter for them (a postponed 30 year auction, worse auction technicals, weaker foreign demand). And there isn't much margin for error, as the gross issuance needs are big and steady. And the sovereign is still relying on Italian banks to buy a lot of bonds.

 

So there is a risk that if economic conditions continue to be terrible and the political situation gets more extreme, the pressure on the banks will increase, and the sovereigns could start to have trouble (and with the political uncertainty, should the need arise, who would the Troika negotiate with?).

Those who have been following our coverage of the Italian fiasco in recent months will be quite aware with all of Bridgewater's caveats, however here are some of the important drill downs, especially as pertains the still woefully insolvent (and now leaking deposits) banking sector. To wit:

Italian banks increasingly look strained, both outright and relative to Spain. Bank CDS spreads have risen 150 basis points and bank eguity prices have fallen 30% in the past two months, and there are some indications of stress in the bank funding flows. Unlike in Spain, Italian banks have not decreased their reliance on the ECB at all, and in February they actually increased their net ECB funding. At the same time, wholesale funding lines with banks and non-banks are falling, and Italian banks have had substantial bond redemptions that they haven't rolled in February and March. Italian banks are getting liguidity by reducing private sector loans and through a healthy inflow of retail deposits, which is helping them to pay for the wholesale funding that is leaving. Italian banks bought government bonds at a healthy pace in January, but the purchases slowed in February, and they have been selling foreign corporate and bank bonds for the past six months.

 

Funding costs for the banks have risen about 150 bps over the past few months and have noticeably diverged from sovereign spreads

And the stocks of the big Italian bank have sold off pretty sharply. The stock prices of the three largest Italian banks are down almost 30% since late January.

Italian bank borrowing from the ECB has been increasing. Italian banks have only paid down a modest amount of their 3year LTRO borrowings, and their net reliance on the ECB increased by €11 bn in February (€6bn in new borrowing and a decline of €5bn in deposits). Spanish banks on the other hand have been reducing their ECB reliance at a rapid pace. Italian banks continue to fund 18% of domestic GDP and around 10% of their balance sheets at the ECB

The quality of Italian bank balance sheets has been deteriorating for years. NPLs are stili rising and Italy's banking system is on course to see historically bad losses.

And the scariest news for those few who are taking the words of UniCredit's CEO seriously, namely that deposit confiscations in Italy may well happen, is that NPL are soaring, and are likely orders of magnitude worse than the official data. Just like in Cyprus.

When we go asset-by-asset through the bank loan books, and look at various deleveraging cycles to gain historical perspective, we think a reasonable estimate is that Italian banks will end up with full cycle losses of 10% on their €1.5trIn of domestic loans, which would be a bit worse than bath the 1993 Spanish recession and similar to the recent US crisis (though the context of the Italian cycle would be that conditions continue to be worse and stimulation continues to be less than the recent US case, but with better quality loans and less leveraging up).

 

To summarize the adverse view:

So that's the situation in Italy: Conditions are depressed and play no small part in the prevailing political uncertainty. Increasing pressures are being placed on an already-stressed banking system. The sovereign is pretty reliant on those banks to buy their bonds, and there are modest signs of those sovereigns also getting pressured. But, there are a few countervailing forces: Growth conditions in Italy will probably stabilize a bit as the big impact of the fiscal austerity fades (but a new round of financial instability cuts the other way). The probability that Grillo actually gets some kind of mandate and then takes a radical path still seems low. The ECB's commitment to do what it takes should for now keep spreads from moving out too much. But the possibility of a dangerous outcome is real and one we're continuing to monitor.

So for all those scrambling to frontrun other lemmings in the global capital reallocation game, be it rushing into US stocks or Italian bonds, be careful: just because others are doing it, doesn't mean massive losses aren't lurking just over the corner.

Don't worry though, if all the bad news outcomes as forecast do hit, the ECB is prepared. After all, as was made abundantly clear yesterday, it has "No Plan B."

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 04/05/2013 - 13:41 | Link to Comment Calidreaming
Calidreaming's picture

fuckin Aliens cant stop the Madness- Moar Forward!

Fri, 04/05/2013 - 13:42 | Link to Comment Ahmeexnal
Ahmeexnal's picture

We can only hope and pray that Italy stands up to the rapist kleptocratic EU and dumps the euro.

Fri, 04/05/2013 - 13:45 | Link to Comment redpill
redpill's picture

If Italy left, yes it would blow up the Euro.  That is why they won't be allowed to leave.

Fri, 04/05/2013 - 14:26 | Link to Comment Groundhog Day
Groundhog Day's picture

Rumy and Draghi should do stand up together and really confuse the shit out of everyone

 

 

http://www.youtube.com/watch?v=GiPe1OiKQuk

Fri, 04/05/2013 - 21:37 | Link to Comment Jam Akin
Jam Akin's picture

Italy has a decent manufacturing base and a lot of old money asset based wealth so my bet is that the common currency compliance will go on for a while. But...was there recently (after Cyprus story broke) and it was not easy to find an ATM with cash in it...and businesses are failing at a rapid clip.

Fri, 04/05/2013 - 14:37 | Link to Comment NoClueSneaker
NoClueSneaker's picture

Yupp - german press started the phase 2 on Grillo . For three weeks he has been a clown, now he progresses to be an "dangerous demagogue" who wants a absolute power ....

  Phase 3: Beppe Grillo The Terrorist ...

 

Fri, 04/05/2013 - 14:56 | Link to Comment Groundhog Day
Groundhog Day's picture

Phase 4 : He hangs himself leaving a suicide note stateing he couldn;t handle the pressure of being in the lead.  Their is an investigation and the results are their has been no foul play.

Fri, 04/05/2013 - 14:58 | Link to Comment Doomer
Doomer's picture

@ Bridgewater:

IS THE POPE CATHOLIC?

Fri, 04/05/2013 - 17:39 | Link to Comment TruthHunter
TruthHunter's picture

"IS THE POPE CATHOLIC?"

??? Is a Jesuit Catholic?

Fri, 04/05/2013 - 14:53 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Exactly.

Can we stop with the bullshit?  Money is entirely artificial.  It did not exist in the garden of eden.  It did not exist in neanderthal caves.  It's not anything other than imaginary.

Nothing imaginary is going to be allowed to cause "this it is!!!"  If the imaginary something threatens mass death, then we will just imagine it different.  This applies to gold and bitcoins, too.  They are imagined to store the ability to buy calories and so since the buyer and seller imaginations are in sync, they can buy calories.

But do not delude yourself -- only the calories are real.  Only the joules in oil that bring the calories to your grocery store are real.

The rest is hand waving bullshit.

Fri, 04/05/2013 - 13:50 | Link to Comment Dr Paul Krugman
Dr Paul Krugman's picture

Like a bridge over trobled water....

Thank you for the good article Tyler.

Fri, 04/05/2013 - 14:18 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

I never thought I'd be voting you up....again (same happened yesterday)! Did you finally see the light?

Fri, 04/05/2013 - 14:50 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

I'm sorry but I'm genetically predisposed to junking Krugman.  It's chromosomal.

Fri, 04/05/2013 - 14:50 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Hey fat Paulie - has dementia set in..or is there a noose nearby?

Fri, 04/05/2013 - 14:53 | Link to Comment slightlyskeptical
slightlyskeptical's picture

No he didn't see the light. it is simply that Europe's troubles make him think that the Fed is doing everything right just because what they are doing is different. The problem is there is more than one path to insolvency or to having that insolvency made public.

Fri, 04/05/2013 - 16:11 | Link to Comment falak pema
falak pema's picture

you count like man with forked tongue; its the FED whose counting is the most relevant and whose downturn will be the most awesome n inelegant. 

Remember how the bard sang for auld lang syne lost, land of the free : 

Once upon a time you dressed so fine 
You threw the bums a dime in your prime, didn't you? 
People'd call, say, "Beware doll, you're bound to fall" 
You thought they were all kiddin' you 
You used to laugh about 
Everybody that was hangin' out 
Now you don't talk so loud 
Now you don't seem so proud 
About having to be scrounging for your next meal. 

How does it feel 
How does it feel 
To be without a home 
Like a complete unknown 
Like a rolling stone? ...

A prize and nobility all gone with holy smoke like hopium of empire dreams...that is now a dronish scream, rhyming with the great Monsanto Rider decree; pale rider of oligarchy crime.

The conscience of a liberal...?

Where have all the flowers gone! 

 

Fri, 04/05/2013 - 13:56 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Yes, Italy dumping the euro would be a GREAT day of European liberation

One morning soon we may wake up to the surprising coalition ... Beppe and Berlusconi, together, putting aside their differences, for the one great task of saying 'BASTA!' to the euro

Fri, 04/05/2013 - 14:04 | Link to Comment NoDebt
NoDebt's picture

Stop it.  I'm getting all misty.

Fri, 04/05/2013 - 15:09 | Link to Comment negative rates
negative rates's picture

He been talkin in circles longer than i've been able to cry.

Fri, 04/05/2013 - 20:52 | Link to Comment WmMcK
WmMcK's picture

Anyone for a Au-backed lira?

Fri, 04/05/2013 - 13:43 | Link to Comment flacon
flacon's picture

Draghi: "The Euro is irreversable." --> Could a banker lie?

Fri, 04/05/2013 - 13:59 | Link to Comment Vashta Nerada
Vashta Nerada's picture

I think what he means is that force will be used to keep things in line, if necessary.

Fri, 04/05/2013 - 14:01 | Link to Comment kito
kito's picture

hes not lying......they will do everything and anything to keep it glued...........they will turn every country into a vassal state, hollowed out and subservient, to ensure the eu goes on...........

Fri, 04/05/2013 - 14:41 | Link to Comment NoClueSneaker
NoClueSneaker's picture

Bit of narcissm and lot of drugs - bankster doesn't need to lie ... he belives the shit ...

Fri, 04/05/2013 - 13:42 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Bridgewater does not understand the political capital invested in Europe.  They vastly underestimate what the Euro means for the Europeans, for the Euro area.

Fri, 04/05/2013 - 13:43 | Link to Comment redpill
redpill's picture

That sounds familiar....

Fri, 04/05/2013 - 13:49 | Link to Comment malikai
malikai's picture

...said with that criminal grin.

Fri, 04/05/2013 - 13:57 | Link to Comment prains
prains's picture

what's the point of this article if it's clear at 0.000000000000001/2% of EU GDP Cyprhesss could blow up Europe and that couldn't be allowed either

Fri, 04/05/2013 - 14:13 | Link to Comment NoDebt
NoDebt's picture

If ZH had a museum of modern antiquities THAT quote would belong in it.  It was burned into my brain the minute I heard it.  Apparently I'm not the only one.

That's gonna hurt SO bad someday when they beat him over the head with his own words- those words.

Fri, 04/05/2013 - 15:00 | Link to Comment franzpick
franzpick's picture

What the euro has meant to "Europeans" will soon be revealed as nothing more than utopian, unsustainable debt-binge expansion: one week of multi-national, M.E.N.A.-like, civil unrest will reveal how much trouble the euro then means to the eurocrats, and how little it means to marginalized national civilians.

Fri, 04/05/2013 - 16:23 | Link to Comment Freddie
Freddie's picture

Ray is a pretty smart guy.  I do agree that the powers that be in the EUSSR, bansketers and european bankster/gangster families will do anything to keep the euro alive.

The few Italians that I know in Italy do not like the Germans and they do miss the lira.   Just like in O muslim's Amerfrika - the states and countries like the "free" money they get from DC and Brussels.

Fri, 04/05/2013 - 13:45 | Link to Comment Bam_Man
Bam_Man's picture

Italy is more than big enough to blow up the entire global fractional-reserve Ponzi.

Fri, 04/05/2013 - 14:43 | Link to Comment NoClueSneaker
NoClueSneaker's picture

How about shitty Unicredit alone ??? Supermario Bross. offloaded all the €U-Junk into it - more than enough to stop the circus .

Fri, 04/05/2013 - 13:46 | Link to Comment Bear
Bear's picture

Euro at 1.30, again ... It's all good again

Fri, 04/05/2013 - 13:50 | Link to Comment jubber
jubber's picture

10y Italy 4.38%  !

Fri, 04/05/2013 - 13:52 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

Shit will close green today.  Accept it and move on.

Fri, 04/05/2013 - 13:58 | Link to Comment nicoacademia
nicoacademia's picture

and gap up on monday.

Fri, 04/05/2013 - 13:54 | Link to Comment Watson
Watson's picture

The most important point about Italy and the Euro is that, for Italy, the threat that ejection from the Eurozone would result in chaos has no credibility.

If Greece/Spain go back to their old currencies, then no imported food, no fuel and probably military governments.

But Italy goes back to selling cheap white goods, and cheap vacations - no real problem.

Fri, 04/05/2013 - 14:09 | Link to Comment NoDebt
NoDebt's picture

The threat of an erection from the Eurozone would result in chaos?

Oh, EJECTION, not erection.  Well, I guess that makes a little more sense that way.  Er.... maybe not.  I think I still like it my way better.

 

Fri, 04/05/2013 - 16:31 | Link to Comment Freddie
Freddie's picture

The evil bankster families, EUSSR, elites slammed Europe with the expensive euro and also Chinese imports hit about the same time.   Italy needs to tell them all to go F themsleves.  They can make it on their own.   Italy has survived in one form or another for 3,000 years.   Their biggest problem is demographics.  I will vounteer to help for Sophia Loren, Gina Lollabrigida types. 

Grillo is right.

 

Fri, 04/05/2013 - 20:49 | Link to Comment WmMcK
WmMcK's picture

+1 - Cheap white goods - you mean like inexpensive washers and freezers, right?  I liked visiting the Med (but not when I was in the USN).

Fri, 04/05/2013 - 13:57 | Link to Comment NoDebt
NoDebt's picture

Who cares about the Euro or Italian bonds?  The S&P is "well off the morning's lows."  Swear to God, Maria said it again.  So everything's cool.  We're good.

 

Fri, 04/05/2013 - 14:00 | Link to Comment rp1
rp1's picture

Italy won't blow anything up.  France, on the other hand...

Fri, 04/05/2013 - 14:05 | Link to Comment oleander garch
oleander garch's picture

Correction.  Grillo got the most votes on his own.  Bersani needed his coalition to get above the FiveStarMovement 

Fri, 04/05/2013 - 14:12 | Link to Comment buzzsaw99
buzzsaw99's picture

Let's hope the Italian people still remember how to treat fascist pricks who lead them down the road to ruin.

Fri, 04/05/2013 - 14:19 | Link to Comment noses
noses's picture

Of course they know – they just send them off to run the ECB.

Fri, 04/05/2013 - 14:12 | Link to Comment Bearwagon
Bearwagon's picture

Wasn't there something like "If you want to do something, that will hurt people. That's why you do it over the weekend ..." uterred by dr. Strangelove (W. Schauble) recently?

I think so ...

Fri, 04/05/2013 - 14:19 | Link to Comment NoDebt
NoDebt's picture

Ask any of the millions who have been laid off or lost their jobs during this fantastic "recovery" we're experiencing.  They know that gig well. 

You always let people go on a Friday.  Hand them their paycheck and let them cool off over the weekend.  Statistically, a much lower chance they'll come back in and spray the place with bullets if they have a whole weekend in between to get drunk and blow off steam.

Fri, 04/05/2013 - 14:15 | Link to Comment bugs_
bugs_'s picture

Could the Euro blow up Italy?  Ask the right question.

Fri, 04/05/2013 - 14:18 | Link to Comment Evil Bugeyes
Evil Bugeyes's picture

The Euro seems to be walking through a minefield these days. So many problems and one misstep could be fatal.

On the other hand, one could argue that the Germans will always dribble out just the minimum amount of cash needed to keep things together at the very last minute. And if absolutely necessary, they will agree to printing as a last resort.

For the Germans, being in the EMU is like holding a tiger by the tail: you don't like it (and neither does the tiger), but you don't dare to let go. If the Euro collapses, so will the German banking system.

Fri, 04/05/2013 - 14:23 | Link to Comment Bearwagon
Bearwagon's picture

So shall it be written, so shall it be done!

edit: /sarc off

 

Fri, 04/05/2013 - 14:28 | Link to Comment noses
noses's picture

Now that even the serious political satire in Germany is educating citizens regarding the miracles of modern reserve banking and creation of credit, there might be some changes ahead. See http://www.youtube.com/watch?v=ro3ll0kPEDk (but it's oviously German).

Fri, 04/05/2013 - 14:20 | Link to Comment Rustysilver
Rustysilver's picture

I thought it was Cyprus last week. This week it's Italy.  Good thing we have 17 countries.

No single country will cause the euro to go done.

It will takes 2-3 countries with a week or so to make a reasonable change.  I don't see it happening;

with all the best wishes from my Zhers.

Fri, 04/05/2013 - 14:26 | Link to Comment Bastiat
Bastiat's picture

Italy's a little bit bigger than Cyprus.

Fri, 04/05/2013 - 15:42 | Link to Comment clawsthatscratch
clawsthatscratch's picture

Cyprus is so last week

Fri, 04/05/2013 - 14:21 | Link to Comment CunnyFunt
CunnyFunt's picture

Cunnyfunt Asks "Could the Yen Blow up the Euro?"
EUR/USD/GBP have lots of "catching down" to do.

Fri, 04/05/2013 - 15:15 | Link to Comment hooligan2009
hooligan2009's picture

who knows what is round the corner in the whacky "race to debase"

peter perfect, rupert roughcut, anthill mob, penelope pitstop, boulder mobile, arkansas chuggabag, dick dastardly and muttley?

http://uk.search.yahoo.com/search?fr=mcafee&p=whacky+races

my betting in this world of the mad scientist central bank is that it is the turn of the US. we have had japan for a few days, and europe for a few weeks, going to be the us, canada, australia, or argentina next..so i pick the us cos its so big..(ponders if bit coin starts coughing whether that counts)

Fri, 04/05/2013 - 15:33 | Link to Comment CunnyFunt
CunnyFunt's picture

Too right, my man. I always wanted to "debase" Penelope Pitstop when I was a child.

Fri, 04/05/2013 - 14:21 | Link to Comment hooligan2009
hooligan2009's picture

wtf is all this about?

http://www.lagazzettadelmezzogiorno.it/notizia.php?IDNotizia=606247&IDCategoria=2694

italian "government" prioritizing repayment of (defaulting on) intenral debt to either banks or companies? and isntead of paying what they owe, deferring it for a 50% this year and 50% next year?

also in the last sentence of the first question here

http://blogs.wsj.com/eurocrisis/2013/03/26/italian-election-fallout-qa-continued/

Fri, 04/05/2013 - 14:22 | Link to Comment Ourrulersknowbest
Ourrulersknowbest's picture

Whoever leaves the burning building first has the best odds of survival.
I bet ze Germans will be the first.we will wake up one morning to the news that they have legged it.and torched the rest of the building on the way out.

Fri, 04/05/2013 - 14:42 | Link to Comment earnyermoney
earnyermoney's picture

Nope. Germany needs a "relatively" weak currency for their manufacturing exports.

Fri, 04/05/2013 - 17:48 | Link to Comment TruthHunter
TruthHunter's picture

"Whoever leaves the burning building first has the best odds of survival."

 

Wasn't too workable in Waco... 20th Anniversery in 2 wks

Fri, 04/05/2013 - 14:27 | Link to Comment css1971
css1971's picture

Worth also posting the TARGET2 balances chart for a laugh and a hint at Italy's future.

 

Fri, 04/05/2013 - 14:31 | Link to Comment mdtrader
mdtrader's picture

The Euro zone - Any questions?

http://www.youtube.com/watch?v=VGdc6APHfEw

Fri, 04/05/2013 - 14:33 | Link to Comment Bearwagon
Bearwagon's picture

There ain't no doubt, that those nerds wearing suits and using belgian top-caterers will not care about this problems. Not for one second. They can't, because they lack the knowledge of the real world, where you and me are  dwelling. It's just a problem of some more laws to them, nothing else. They ain't got no clue what they're doing, get real folks. And it's not that they plan on asking anyone, german or other...

Fri, 04/05/2013 - 14:31 | Link to Comment fabmax
fabmax's picture

Private wealth in Italy is huge. 70% of Treasury Bonds are owned by Italians. The amount of private wealth is >> public debt.

The only problem we have is called Euro. The Quisling(s) ruling this country (not only Monti) serve Goldman Sach's interests.

Once we get rid of these "patriots" the problem will be solved.

Monti knows the Optimum Currency Theory by Mundell very well, I can assure you. He knows it and in spite of that he killed his own country; oooops. sorry, his country is called Goldman Sachs. He knows that according to that theory, the EURO could never work.

 

 

 

 

 

Fri, 04/05/2013 - 16:46 | Link to Comment Freddie
Freddie's picture

Goldman's Monti and Draghi need to be Mussolinied.   Everyone knows the euro cannot work - it is a tool to steal the wealth from the middle class in Europe.  The EUSSR was just a stealth USSR.

Fri, 04/05/2013 - 14:35 | Link to Comment fabmax
fabmax's picture

I meant the Optimum Currency AREA Theory by Robert Mundell.

Fri, 04/05/2013 - 14:58 | Link to Comment whirlybird rules
whirlybird rules's picture

Everything that has happened since Greece crashed and the aftermath is like sci-fi.  When will this end????  Italy is big enough to be dangerous.  I don't see how the ususal suspects can sweep the events taking place in Italy under the rug too.  

Fri, 04/05/2013 - 17:50 | Link to Comment Freddie
Freddie's picture

This shit has been going on for hundreds of years in Europe.  The hate, distrust and conflict hurts the citizens and is formented by the bankster families/elites of Europe.  It is profitable to F over the middle class citizens and profitable to get people in each country to hate each other for no reason.

Fri, 04/05/2013 - 15:44 | Link to Comment q99x2
q99x2's picture

Can Italy Blow Up the EU? Let's hope so and I can migrate the hell out of here.

Fri, 04/05/2013 - 16:48 | Link to Comment rosiescenario
rosiescenario's picture

The Italians will need to pick up the pace if they are going to blow up the Euro before Portugal, France, or Spain beats them to the finish line.

It may well turn out that the BOJ will be credited by historians with blowing up the EURO, the $$$, along with many other assorted paper relics.

Fri, 04/05/2013 - 19:40 | Link to Comment goldenbuddha454
goldenbuddha454's picture

"Could Italy Blowup the Euro" is a rhetorical question.  Its just how fast will this happen that noone knows.

Sun, 04/07/2013 - 15:31 | Link to Comment optionsman
optionsman's picture

Italy wont leave Euro.

Mr Draghi please explain what do you want: strong Euro or weak Euro. All your actions point in the direction of weaker Euro yet when the market attempts to weaken Euro suddenly you talk of redenomination risk? What are the rules for OMT? or all the answers to these questions are covered by secrecy provisions for ECB minutes? WTF WTF WTF

The Germans with their secret love of inflation- that to me is the biggest bunch of D-Bags. just admit it and stop the madness. please tell Mr Draghi explicitly that you want weaker Euro higher inflation and bigger nominal exports.

just saying......

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Do NOT follow this link or you will be banned from the site!