Italy, Greece, Financials Crash As European Stocks, Peripheral Bonds Plunge

Tyler Durden's picture

Led by a broad-based collapse in financial stocks, European markets extended and accelerated their plunge today. Thanks to the increased systemic linkages enforced by The ECB, peripheral sovereign risk is spiking as their national banking systems crash. Every European nation is now in at least correction since the end of QE3.

Europe crashed today...


Led by utter carnage in financials...

(note that thanks to Draghi's liquidity spigots financial credit remains suppressed -for now - relative to equity. We do note that Sub financials credit is blowing out)

And every EU nation is now in at least a correction since the end of QE3 (Italy, Spain, and Greece in bear market)


And as EU financials tank, so sovereign risk soars for peripheral nations...

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So Close's picture

Must... ban... short selling...  Raoul Pal.. The End Game...  Round two!!!  Ding ding ding...

hedgeless_horseman's picture



Look at the channel this morning in the one minute for Brent.

Is Goldman on a mission?

Quelle horreur!

KnuckleDragger-X's picture

They haven't buried Greece yet? The corpse must be getting pretty rancid by now.......

Soul Glow's picture

If the Greeks would have just paid the IMF their taxes none of this would have happened.

BandGap's picture

The Greeks have a leg up on what it is going to take to survive in the coming months/years.

Mr. Universe's picture

As the dominoes tumble, Italy, Portugal, Spain, etc. etc. out of the ashes of our former civilization will rise a New World Order. Oh boy, I can't wait.

Haole's picture


Jump on before the ride stops!

yrad's picture

I just saw a 26 handle for oil. Fun!

pods's picture

I want to see the DOWn close at least 500 down and at the lows of the session.

Pucker up, here comes a finger.


KnuckleDragger-X's picture

Finger? More like a colonoscopy with an eight inch drain pipe......

Edward Morbius's picture

So, have the boyz positioned themselves short for this, or has Janet given them the finger?

back to basics's picture

Cue in Draghi with "whatever it takes"........LOL

R.R.Raskolnikov's picture

Yes indeed. Those were the good old days. Playing Donkey Kong on the Super Nintendo! Next time I come with some Duke Nukem phrases.

pods's picture

Eek, guess I am old. We still have a cocktail (sitdown) Donkey Kong in my parent's basement. Can't wait till I have to move back.  Donkey Kong, Ms. Pac Man, Super Chexx hockey, fridge and a shitter.


RockySpears's picture


"Lizard skin makes great boots"

Dragon HAwk's picture

I'm here to Kick Ass and Chew Gum, and I am All Out of Gum.

undermind's picture

Historic snowstorm to cause closure of stock exchanges??

Soul Glow's picture

If stocks drop 2% per day, how long until they are at zero?

R.R.Raskolnikov's picture

Quiet long becomes in the limit it will go to zero. I think it will never reaches it because you sequently take only 2%.

Soul Glow's picture

I'll live for a day the S&P is at half a point.....

"The Dow Jones closed today at 4 points while the S&P closed at half a point.  Back to you Larry."


mkkby's picture

In a bad month you can still lose 90% of even that.

starman's picture

the surgery went well but the patient didn't survive!  

Edward Morbius's picture

But, but, but... Barry said everything was hunky dory!

Soul Glow's picture

The Dow Jones is peddling fiction!

Mr. Universe's picture

Can't be true, I heard a leading economist tlling me about the recovery and how jobs ...well I would of heard the rest if I hadn't been laughing so hard. My wife is now starting to really understand, yep, all lies.

mkkby's picture

Stop laughing and look around you.  The freeways of every major city are JAMMED with commuters on week days.

Easy to find a job if you REALLY want one.  Very few of the diversity crowd want one though.  Happy to let obama mamma support them.

Lady Jessica's picture

'Tis but a scratch [audible hemorrhage].

Mr. Universe's picture

Alright, we'll call it a draw.

BandGap's picture

The one thing going for Greece is they have learned to deal with the misery others will soon face.

pods's picture

Whoever named it "Greek Style" was spot on!


katchum's picture

At least we have a current account surplus, unlike you Americans.

o r c k's picture

Surplus olives? That's the pits.

Mark Mywords's picture
Mark Mywords (not verified) Jan 20, 2016 12:07 PM

The last financial collapse took months to unfurl. I think this one will take days - perhaps hours.


JustObserving's picture

When the $600 trillion in derivates begin to fall like dominoes, the game will be on.  How many European and US banks will survive?  Will the Fed hand out $30 trillion to try to save the failing banks?

The US screwed the world in its attack on oil and Russia


Soul Glow's picture

If the quadrillions in derivatives go bust, $30 trillion ain't going to do the job.

Mr. Universe's picture

There is no way we could have seen this coming

mkkby's picture

When the trillions in derivatives go bust they will simply be ignored.  It was just a big scam anyway. 

Try to find someone who collected on sub-prime or sovereign debt CDS.  You can't.  They just changed the defintion of default.

azusgm's picture

Kyle Bass

Jon Paulsen

Michael Burry

Peter Schiff


You are correct about the sovereign debt CDS though. Markit did change the definition, IIRC.

PTR's picture
GWAR - America Must Be Destroyed - theme song of a collapse for 80/90s kids. They even threw in clips from Dr. Strangelove near the end.


moneylover3's picture