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Italian Bond Futures Flash-Crash Into Close
Fat-Finger, Flash-Crash, or Forced Liquidation... either way, something broke in the Italian bond futures market...
Fat finger?
or forced liquidation?
Charts: Bloomberg
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Today seems to be a I-need-to-wind-this-shit-down trading day. Anything can happen, even to your best trade "ideas."
Yep, and when the unwind starts, and people start scrambling for cash to meet margin calls, then it is time to remember Rule #1: "If you're going to panic, panic first".
Tried to post a picture of an angry bear... :-(
Tyler only let's the official contributors post pictures. The rest of us can suck ass.
or... you can kidnap a contributor to post your pics. :-)
It pays to have friends in high places Mrs. C. ;->
Thanks for the visual, Mrs. C
In so many ways it really was the smart hedge.
That's rather harsh. It would be better to state that they are selective in who they allow to post pictures.
Sucking ass coming soon to a CNBC anchor.
Dr engali --- or you can create your own site using your own initiative, then you can quit bitching like a welfare liberal
Italy is the new Greece. Its debts can never be repaid either.
Luckily, every Italian has two kidneys like every Greek.
China has considerably sped up the debt apocalypse
I wish the Chinese had completely de-pegged. I think Schiff is wrong re; the Yuan. It would collapse in value, not rise.
China's reality is different but no better than Italy or the US...negative demographic and peak population driving the debt creation to make believe the engine is running...
1- Despite India's smaller population vis-a-vis China...India's annual popualtion growth is more than twice as fast as China's population gains...because....
2- According to OECD, China will hit peak population in 15yrs and, like Japan, begin outright shrinking...
3- India's birth rates like China's and the rest of the worlds will likely go negative within a decade like China's and almost all the advanced economies.
4- When the primary driver of growth (increasing global growth of consumers) is rolling over...the idea that all that debt would be more easily repaid in the future based on bigger markets, bigger revenue streams, and ever lower rates...well it all starts to look like a really bad idea
http://econimica.blogspot.com/2015/08/the-chinese-mirage-no-different-than.html
Shit bout to get very real both in East and West alike.
Can't speed up something that can' be timed to begin with. It's called chaos for a reason. Enjoy the show.
Et tu, Portugal, Spain and Ireland?
...only that the Italian Gov. still believe, that they can fix the 130% plus debt level.
Who's got the popcorn?
:)
Italian bonds trading at 137, if that doesn't tell you how fucked up the current environment is nothing will.
And a pint of beer is $5 at every bar in Oregon. Now that's fucked up.
But at least you are getting something real for a piece of fiat paper...Cheers!
Damned right. Can you imagine paying 37 points over par for that piece of paper? I was shocked they were even trading at a premium at all, let alone 37 points. What's the coupon on that thing? 12%?
all bond futures markets (with a few minor exceptions) carry a 6% coupon. You can chekc out he US FV's for example.
http://www.cmegroup.com/trading/interest-rates/us-treasury/5-year-us-tre...
it does highlight a few things tho, one debt statistics to show market values of debt (PV of coupons and maturitiy amount). The Fed/Treasury have been able to lower the coupon rates on newly issued debt, but that still leaves a much higher coupon than yield and hence a much larger debt burden for the US (and the UK< Germany, Italy) than is present in official stats.
http://www.dallasfed.org/research/econdata/govdebt.cfm
http://www.treasurydirect.gov/govt/reports/pd/mspd/2015/opds072015.pdf
I don't have the market values of the 13 T par value in private hands (or the 18T including trust funds) of US Treasuries or any other countries government debt.
draghi will buy them
As an Italian, I can say that yes for now at least two kidneys are safe despite Mr. Renzi and his idiotic policies!
Yes, I completely agree with you, Dr. Engali, BTP trading at 137 is a perfect sign of the mess this world has become and will remain for the foreseeable future.
I would never ever touch BTPs with a 10-meter pole, let alone buy them....it's like giving money to the terrorist state of Italy and the EU getting back pieces of paper only good to keep your behind clean (not even that anymore, since they aren't really worth even that and moreover, everything is digital, there's no actual piece of paper!).
Meanwhile, gold is at a ridiculous 1.000 euros an ounce, I am fully in and right now I can't buy any more because work here in Rome is downright disgraceful....hopefully I will resume buying soon :(
so, you're another poor fuck dispensing financial advices and blaming the mess onto some external actors (in this case the EU), very convincing -_-
However despicable in his communication style, at least the current gov't has hinted at public spending cuts, quite a relief for just about anyone else in the Eurozone.
I'm long gold too because there's a huge mess about to unfold, but surely it won't start in Italy. After all, you just need to impose on patrimonies a one-off tax (5-10%) and there you are, out of the debt emergency. No one has done it yet because whoever does it would deliver the country in the hands of financially-reckless populist parties...
CNBC rally monkey:
https://www.youtube.com/watch?v=EmfE4KAZicY