And Now, Courtesy of Bridgewater... It's Italy's Turn

Tyler Durden's picture

Earlier today, by way of a simple graphic, the world's biggest hedge fund, Bridgewater, was kind enough to remind the world just how pointless any debates about Europe's future viability are if the primary funding conduit: the EFSF/ESM hybrid can not provide the cash needed for even half the combined funding needs of Italy and Spain. Now, Bridgewater strikes at Europe once again, this time redirecting the general attention to where it is long overdue: Italy.

Because while Spain has for months now, ever since the publication of the 'Ultimate Doomsday Presentation' right here in Zero Hedge on April 7, been punished with ever widening bond and CDS spreads, and a local stock market which recently hit a 12 year low, Italy has largely avoided the vigilantes and general bearish scrutiny so far. The main reason for this is the assumption that Italian Banks had loaded up on enough LTRO cash that they had sufficient dry powder to buy up Italian bonds in the primary and, more importantly, the secondary market for at least a few more months. We bold "the assumption" because as Bridgewater calculates, the 'dry powder' number is far, far less than conventional wisdom had been expecting. In fact, at negative €48 billion in residual LTRO capital, Italy flat out has no additional cash with which to plug ongoing debt funding needs.

And with that, it is time to wave goodbye to the always wrong conventional wisdom, and to wave in the arrival of the vigilantes, who had been so missed in Milan since the fall of 2011 when they nearly toppled Europe's fulcrum economy, and only the sacrifice of Silvio Berlusconi prevented an all out catastrophe on November 8, 2011. This time, the token replacement of an unelected token technocrat (and Goldman crony) will no longer appease anyone.

Source: JP Morgan's Michael Cembalest

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veyron's picture

When will that leaning tower of Pisa fall?

BKbroiler's picture

never.  half the world's dirty money is laundered through the vatican.

newengland's picture

Is that the same Vatican which has a problem with 'leaks' lately which upset the Pope and the bank? Yep. It is.

The Vatican bank is in deep, deep trouble. Maybe another one of their people will be found hanging under Blackfriar Bridge in London like the last time they got in a fix...or maybe not. Point is this: forget the Vatican. It's bust, and leaking like a sieve.

BKbroiler's picture

10% of every collection taken by any catholic church goes to the vatican.  this is called the decima.  Think a couple hundred years worth.  The mob modeled their pizzetto after this.  The vatican is its own entitry, free from italian law.  Talk about seperating church from state.  The vatican is its own country.

markmotive's picture

Fiscal union or monetary extremism. Maybe both...

Don Coxe on gold-backed Euro bonds:

Oh regional Indian's picture

A couple of Hundred years?

How about a 1000 years of pillaging, looting, conversions at knife/spear/gun-point. Looting of the world's gold and silver... Papal Bull Shit's Gold.

The Vicar of Christ..... lives like a King.

Perhaps Catholicism should be renamed Catch-all-in-schism.



CvlDobd's picture

I've never seen so much, dare I say, anti-religion commentary here.

It's beautiful.

The things the Catholic church has done over the years are so horrible it is beyond defense. I give my family members so much crap when they start talking about donating to the Catholic church. What a fucked up organization.

Hopeless for Change's picture

you tube search "George Carlin Religion is Bullshit" if you haven't already seen it.   Lots more ammo for your discussions.

newengland's picture

Carlin the comic was funny, but hardly anything that any serious person would consider in affairs of money or state.

Squid-puppets a-go-go's picture

Carlin may not have been an economist, he was just an intellectual

But an intellectual that has not taken the blue pill is a more authoritative voice than an economist who has taken the red pill

daveeemc2's picture

Religion has convinced people that there's an invisible in the sky, who watches everything you do every minute of every day. And the invisible man has a list of ten specific things he doesnt want you to do. And if you do any of these things he will send you to a special place, of burning and fire and smoke and torture and anguish for you to live forever, and suffer and burn and scream until the end of time.

But he loves you.

And he loves you and he needs money.  <G. Carlin>


tarsubil's picture

Did he say religion or government?

disabledvet's picture

you obviously haven't been in charge of money or a State.

CvlDobd's picture

Huge Carlin fan. I mention points of his here from time to time.

derek_vineyard's picture

overtly putting a basket in front of you where everyone can see how much and if you donate......pitiful

i don't donate, because i only go to church when forced to, because seeing those baskets as a child was so blatantly hypocritcal...i used to think shouldn't it be the other way around----the church giving  

i guess i'm too simple thinking

James-Morrison's picture

When you are out in the woods, huddled with your gold, guns and livestock, who are you going to turn to when the hoards descend on your cabin?

Your neighbors, your church or your government?


Ahmeexnal's picture

Your neighbors, your church or your government?

Nope. Bouncin Betty is your friend.

francis_sawyer's picture

I planned on just listening to some Doors tunes... 'The End' might be on the playlist...

potlatch's picture

She's gonna set to barkin!

CvlDobd's picture

@ James Morrison

You religious people crack me up.

Oh god you are such a good god! Thank you so much for creating a world so fucked up all I can rely on are gold, guns, and livestock while I fend off attack from a feral mob. Amen!

newengland's picture

You are not simple. Perhaps you are mean. It is the privilege of any person with money to gift some to those who have not.

Oh regional Indian's picture

That's right. Via tithing basket to a tax-free church in whose DNA is massacre, In-quisition, cruelty, conversion by the sword.

If you want to give, just give. And shut up about it. 

I wonder how Catholics of justify Church Pedophelia. Because it's all in God's name?

Shepard's shepard SHEEP.



newengland's picture

Oh regional Indian, mithering the West, while your own land is imprisoned by a caste system far worse than anything seen in the lands you visit here.

You silly hateful person.

Your Gandhi was a mysogynist who denied his wife whilst pontificating. That is just one example of your failed state.

Oh regional Indian's picture

Precisely NE, and so see how I pillory gandhi... right here, months before thsi conversation:

"You owe it to yourselves. Stop giving the beast power through protest, allowing then to humiliate you, bludgeon you, chain you, im-prison you. Every hero they made for us this last century, Gandhi, MLK, Mandela, whose Jail times made them somehow revered, were false gods. Deeply compromised individuals of weak moral character, beholden to the same power. If you feel angry reading the above, it only shows that you have bought the legend of these Clay Footed messiah’s, to our own great, collective detriment. You need no messiahs. None. Zero."

'Gandhi….in your face, the new gandhi. First off, the old british stooge gandhi did us no good. He served his british masters well, holding India back from fighting off the tyranny through non-violence, while violence was visited upon indians in vicious, relentless brutality. Sure, he saved his master’s hide well. Left his mark with an India aflame in communal rioting. And with his co-conspirators jinnah and Nehru, left India, never a nation anyways, divided three-ways and forever at each other’s throats.

So, that was Gandhi’s legacy. Seriously, any Indian’s getting their knickers in a twist reading this should get the propaganda, father of the nation crap out of your heads and look at this effette, british trained barrister, trained in Africa (Gandhi was quite the white worshipper by the way), who was presented as a saint, readymade from South Africa. for an Indian population needing one such. How convenient."



disabledvet's picture

at least your Civil War is a three way. Ours is "all against all" over here. On the good side "that's usually good for 1000 Dow points."

Bezukhov's picture

Its hard to hate on someone who utters pearls of wisdom like this:


Civil disobedience becomes a sacred duty when the State becomes lawless or, which is the same thing, corrupt. –Gandhi

Oh regional Indian's picture

Bex, his master's in the Inner Temple in the City of London taught/spoon fed him well.

Gandhi was a tool of the empire, nothing less. A sell-out, shameless tool.


JOYFUL's picture

...a tool of the empire, nothing less. A sell-out, shameless tool.


at last. a revealing self portrait by the master blaster hisself.

Praise the Lord! N pass the Popcorn...

this is getting good!

James-Morrison's picture

It's not that hard to imagine.

Just think about how governments justify corruption, wars and money printing.

Same thing -- red flag, blue flag. 

(I'm embarrassed for you, to have to point this out to you.)


JOYFUL's picture

Actually, monastic pedophilia got it's headstart in yur hometown, Mr History Scholar( n now Pontiff of Provocation!)...

das right!...all those parasitical pretenders "listeners" who hung onto the Buddha's words, and then set up closed union shop as intercessors between the peeple n the powers above...that's MOTHER INDIA, ori...

where there's never a trend towards truth that doesn't get twisted into a scam to defraud and defuse the 'natural' impulse of the human twards onepointed mind...since that happens all over this world, and yu are our resident correspondent there....why don't yu stay on the scene and report on yur efforts to clean house there, instead of practicing rope tricks from yur newly made bed of nails?


caution....snakes in grass.

newengland's picture

Maybe I missed it. I thought the commentary was about money.

slewie the pi-rat's picture

it was until ori did the string-jumping spammer act for the 3,000th time!

a slewie deathMatchTM may be too good for the old sport, soon...  tyler may just cut the mofo's throat for abject cowardice at the sight of the pi-rat who is gonna take the asswipe d.o.w.n. one way or another

trust me!

Oh regional Indian's picture

On cue, the Joyless's army to the rescue.

Hypocrite Rat. AssFire and the Mewing Newman...



JOYFUL's picture

Slew n I don't actually cross paths here much Vivek, and we certainly don't practice the kind of tag team WWF farce fighting that yu and yur Chinbot pal have taken up in the last week....

hmmm, since Chu-mli is actually not a real person, but a collective effort of a bunch of Chicom wannabee capitalistroaders, I think I'll call him "the Beast from the East.....

yu, it's a of my favorite characters from back in the days....Tiger Jit Singh....Tiger, of course, couldn't fight his way out of a wet paper bag, but he was a colourful character who always entertained!

Keep diggin yurself deeper in genius!

potlatch's picture

Red Chinee up in ol' Jed's hoosegow without him awares?!?

nmewn's picture

So, I'm scrolling along...minding my own business, drinking one of my two state/Bloomberg approved daily portions of caffeinated beverages and what happens...

"...and the Mewing Newman..."

an unprovoked, drone attack from fucking India on some cat named


You do realize you're on the verge of some sort of mental breakdown don't you?

Oh regional Indian's picture

Not really nm, but apologies for the drive by, a heat of the moment thing.


nmewn's picture

Understood...try to hold onto your sense of humor...we may not agree on everything (or anything) but we're still all in this shit together.


newengland's picture

slewie the pi-rat :-)

The silly caste ridden ORI is plain to see as a snivelling mithering old fool!

potlatch's picture

touche sir.  these threads are nearly as inflated as the currency.

James-Morrison's picture

Despite thousands of years of human imperfection,  the core of this religion has survived.  

Like mankind, with it's kleptocracy, banksters and sociopaths, there is always hope. 

For without hope, there is nothing...

James-Morrison's picture


Short fiat based assets,  Long humanity.  

potlatch's picture

empirically, that actually is hope you can believe in.


all others, metals or undauntable real estate, plz.


Raymond Reason's picture

That's right.  The gates of hell have not prevailed against the church.  The essential doctrine (the Nicene Creed) and the faithful elect have prevailed down through the ages as foretold, mainly in the Orthodox branch, but also in the Catholic and Protestant, in spite of false teachers, infiltrators, saboteurs, provocateurs, fifth columns, false flags and all the other wiles of the beast, thanks to the continual prayers of the monastics down through the centuries.  Glory to the Father, to the Son and to the Holy Spirit now and ever and unto the ages of ages. Amen 

Pope Clement's picture

Hahahahahaha Now that's funny'I don't care who the fuck you are....