This page has been archived and commenting is disabled.
And Now, Courtesy of Bridgewater... It's Italy's Turn
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
»
- 37717 reads
- Printer-friendly version
- Send to friend
- advertisements -
Way too much anti-Germany/anti-nationalism/europhiles in Germany's government. The German people need to kick them all out of office (which is most of them) and replace them with nationalists...
Funny that The Reformation was in part inspired from long-standing complaints about the amount of Gold flowing from Northern Europe to Rome - especially in England - that we overlock that The Reformation was essentially Northern Europe freeing itself of Mediterranean economic drains and holding onto the gold needed to industrialise
history: the pause that refreshes.
thnx dude ;)
Is this why there was no money in the atm's Zuckerberg used?
No money for Suckerberg. Money for others.
but but but the parmagiano it is a so good
Since we are obviously moving to a whole other level, bailouts need to be distributed based on Larry Summers' ranking of his childlike delight delta as he inhales that nation's cuisine with the rest of the kids during the summer villa- and sailing-time.
LOL
The world has become tired, corrupt, confused and far too complex to unravel. If a Gordion knot solution is not imposed fairly soon, we are bound to strike chaos like the proverbial moth on the windshield.
The grand plan for Europe better be a plan for breaking up amicably, because any plan for further political and fiscal integration will be the equivalent of strapping on a straight jacket with explosives.
Europe's woes derive from the machinations of the Trilateral Commission and its Rothschild/Rockefeller mad idea of a new world order. These people would rather see Europe burn than give up their money and power mad schemes.
Dalio sees the big picture, not the ants crawling across it.
They have made lots of money on every war going back to at least 1850. War and killing people is a big business. Sad but true.
Ray Dalio is a giant. I really like Kyle Bass, Hugh Hendry, Jim Grant and usually Jim Rogers but Ray is just about in another league.
Freddie,
Whatever one's religious persuasion is a private thing. This issue is about cold hard cash.
Money is colour blind, and 24/7.
Wrong.
For some amongst us, money is a religion...which they worship to the great cost of the rest of us.
Joyful,
The best way to help a poor person is not to become one. Pay for your own beliefs, and respect those who assist others beyond your reach.
Time to burn down the Vatican.
Pope, meet lamp post!
Ahmeexnal,
If you could see the Vatican and all its artistic treasures, then perhaps you would be less inclined to sheer vandalism. The great library of Alexandria was ruined by your sort of thinking. The Nazis burnt books too by your way of thinking.
Those artistic treasures ain't the vatican's to keep. Let those treasures return to their lands.
Then burn down the vatican cancerous tumor with the sociopaths inside.
NE, you can worship the idols of your liking in the privacy of your MIND/iPod/Xbox.
Do not FORCE onto others your FEARS, and either coooperate in bringing down the most oppresive and repulsive corporation the world has known: the Roman Catholic Church....or just STFU.
By your way of thinking, the sociopaths have always been able to fleece the sheeple. If that's what you want for YOUR children, fine. Let them live on their knees like you have.
The rest of us will take our chances and die fighting if need be.
Ahmee, 2000 years of programming is hard to break.
Otherwise ask why the Vatican has not lost it's sheep in droves as the Pedophelia stories have poured forth.
Same people will kiss a man's ring and consider themselves saved.
Bah!
ori
Right ORI.
Behind the catholic ring kissing ritual....is the ancient ritual of kissing the goat's (satan's) anus:
http://history1101section6744.files.wordpress.com/2011/11/kiss.jpg
...interesting comment. http://www.youtube.com/watch?v=2cPC_OTleNI&feature=relmfu
yu may be tru there, ne, and I'm not here to argue that particular point...
but I'll tell one thing sure - the bastards whom I referred to seek to impoverish us in more ways than just financially...they intend to steal everything of value to us...and some of those things are more real n more valuable than $.
Is the pill for ponzi unravel fatigue red or blue?
If I wasn't a libertarian, I'd say that charts should not be allowed to use "in billions", instead use all the zeros.
How to Lie with Statistics
QE 3, here it comes!!! Now thank the Bernank!
Mama mia, that's a spicey meatball.
lol. a meatball that's 10% meat!
100% pink slime
A German, an Italian, a Spainard, and a Greek walk into a bar. Bartender asks who is paying and what they'll have to drink. German says no problem, he's paying.
Italian says, Then I'll have 5 gallons of Chianti.
The Spainard says, then I'll have 5 gallons of Sangria.
The Greek says, then I'll have 5 gallons of red wine.
German says, "And I need a Black Russian!"
Bartender, "A Black Russian?! WTF?"
German, "Well then, how about a dark-skinned Ukranian? Might as well, I own everybody else already."
Deleted under instructions from red wine monitor
You called it perfectly Tyler! What is the next / Pathetic , Synthetic Hybrid?
Dapper Dan posted this at 23:16 on another post:
Things are so bad right now the G7 can not wait till later in the month for the scheduled meeting.
http://www3.nhk.or.jp/daily/english/20120605_07.html
G7 conference call on global economy
Group of Seven nations will hold an urgent conference call on Tuesday to discuss the European credit crisis.
A spokesperson for Canada's Finance Ministry told NHK that discussions will be held among the finance ministers and central bank governors of Japan, the United States, Canada and four European countries.
Officials will discuss Spain's financial problems and concerns over the possibility of Greece exiting the eurozone. They will also talk about recent indicators showing an economic slowdown in the US.
The purpose is to confirm that developed countries will make concerted efforts toward stabilizing the markets ahead of the scheduled G-20 summit in Los Cabos, Mexico, later this month.
Representatives from emerging economies, such as China and India, will join the summit at the Mexican resort on the Baja Peninsula.
Jun. 4, 2012 - Updated 23:07 UTC (08:07 JST)
This isnt new we heard this during the us session today.
The bond vigilantes are going to deliver some old fashioned consequences to the time serving, lazy, money for nothing and chicks for free Monti, Bunga Bunga and the rest of the profligate EUSSR.
Thanks for the catch, but it’s getting harder to remember whether it’s the 253rd or 254th announcement of a last ditch emergency meeting of the world’s supreme authorities that’s going to fix the European Crisis for keeps and for which we will be forever and eternally grateful and in their debt.
Always nice to have you around J.R. +1 I hope you enjoyed your weekend. Don't forget London is closed.
Wonder if Dallas will close June 13 for the new generation "Dallas" debut? Just kidding... just kidding.
J.R.
pitiful short squeeze out of Asia for the n time.
Do not get long aud/usd chump666.
The pivot is .9925-57. It's going lower. 200 week sma .91
Support .9516/ .94464 Daily. Proxy the trade( aud/jpy).
I am short Australia and anything connected to China.
Japan has had some decent #'s.( PPi/Cp[i) ZIRP policy. Tightened the trading band with China. ACB's are buying dollars.
Japan is selling them. Australias' #2 trading partner is Japan. USA #3.
Falcon and Gladiator
http://capital3x.com/think-tank/the-counter-trend/
This rotten house should come down as hard and as fast and as awful as it possibly can and catch the people that deserve to lose everything asleep or in the midst of their rancid thoughts. A better world awaits on the other side, debt free, more egalitarian, more fraternal and with more liberty, and opportunistic for young people.
The sooner the better. The worse the better; for the real people. I am so ready to take the chance to plunge into a better world. The best hopes you truly have for a better future are riding on the crash. With luck it will be a fucking disaster. And wipe out everything. Except the people. One or two year camping trip to live in a better world. Face it with joy, it is God's laws at work.
P.S. e-mail me for simple instructions on how to turn lead into silver.
Lead into silver, as in robbery, another heist? No, thanks. JP Morgue do that without the gun, unless threatening Corzine to pay up and shut up with client funds.
It is a fact, horrid to contemplate by the Zero Herd, that Banks create money out of thin air. This is not a theory: it is current practice. So, that is how the European, and any other Banking System problem will be solved: Money will simply appear in accounts that matter. Does it matter that it is disguised as "an injection" from the IMF? or China? or the Fed? Some of it will filter down to the citizenery, while most will remain as bartering chips among the banksters. Of course, the monetization of debt will dilute the value of the money, but that is what is intended. Assets will be supported, nominally, and life in the modern world goes on. Maybe it shouldn't be this way, but it is.
Eh? QE to infinity is something that the Fight Club understands better than whiners who do nothing about it except bleat and moan their sorry political fate.
The issue recently is where the liabilities for said money appears as money is created from debt. And it seems that those debts are being socialized rapidly while the ship rats are heading for the exits.
The only reason Italy has remained standing is because Uni-Credit has too much of the Germano-Austrian banking systems under it's roof.
The Rotterschilds need a controlled collapse...which they are working through their Santander agency...when they're ready to close the doors, England goes up in smoke...
A collapse of Uni-credit would be Kredit-Anstalt all over agin...they can't affort that wildfire...or to lose control over Germany.
OK, Joyful. What are you going to DO about it, apart from state the bleedin obvious?
By the way, the article points out the bankrupt Italian state, and that is nothing to do with its people or religion. It is very much to do with the failed EUSSR and latest failed fiat money experiment, the euro.
I'm not gettin the drift of yur comments too well here ol son, but yur heart seems in the right place, so I'll be yur Huckleberry this once.
I moved outta the Euromerikan prison zone so as to operate as a freeman able to offer counsel n encouragement to the haplopgroup brothers(and anybody else who happens to share the core values) left behind in the fallen lands to asphxiate under a cloud of chemtrailed mindcontrol psyops precursor to the total annihilation of our bood lines by weirdo khazarian kultists.
I don't gotta "do" much else chumster...I'm sitting tight*, here in Asia, waitin for yu all to jump outta the pot n fight for something bigger than the best deckchair on a sinking ship. Bin fully off grid for a month now... check in to remind folks that the doors outta CampFema are closin faster than yu realize in yur dreamy state of paralysis.
*four thousand good ol backwoods boys what handle a gun n can ride hard over trail would pretty much put this whole mess straight. Southerners?
We ready for yas...
What is very amusing are the "bancarellas" just at the exit of the San Pietro tour in Vaticano. Nice merchandising! You can buy your ticket to Paradise for a few Euros soon convertibles to Liras. There are very interesting medieval procedures looking alike both in the Vatican and the City of London. How do these gay manage to stay steady for a thousand years or so?
Entering San Pietro one of my kids was surprised by the dark gregorian chorus. "Worse than my Playstation games!", she said.
Philistine, clearly unable to appreciate the beauty of Western culture as seen in the great works of art at the Vatican.
This article is about money, but your sort of grubby politics tries to use it for lowlife point scoring...for what? Your atheist or socialist or corporatist way?
Western culture? bhahahahaha
Go ask your bishop about the Egyptian obelisk at St. Peter's Square
http://1.bp.blogspot.com/_6dKQTchkJaA/TOvApfquE0I/AAAAAAAAUpc/qtgzL9M2KDw/s1600/Vatican_Piazza_San_Pietro_Obelisk.jpg
Amen (Ra)
+1 TWD
A lot of religious jingoism in the oneupsmanship fights above; you and ORI do seem to be aware of the events of 6,000 years ago that spawned the age of Myth and all the subsequent priestly invented religions. It has been pretty well established that all the primal old gods fron around thw world which include EL, Brahma, Shamash, Ra, Kali, Athena, Saturn, Shang-Ti, Zeus etc. were well known by our ancestors to have been fucking planets. The Dark Ages of priestly inspired horsehit still reign... http://www.youtube.com/watch?v=OH7lrjixaNA&feature=related
I can't wait until that European conference call falls apart today! { spx 1208}
Yen,
Let's enjoy the show. Dalio is on the money with this, and saw it coming last year.
I don't want to see anything ( bad) happen. I'm not complaining about JPM stock though!
When will the unholy trinity of populist statisms (Fascism, Socialism, Communism) receive the same intensity proctology scoping that the Vatican gets ? I'm not defending the Catholics....I just want to see fair play for the "New Scientific Religions" of the unholy trinity ! Why do liberalism and socialism always get a pass in the scrutiny search scratch and sniff ? Pap smears for all the non-papists ! Monedas 1929 Scratch Socialism's Butt Then Sniff Your Fingers
And more than anything/anyone, US citizenism?
The irony is that Italy is a fabulous country. Italians know more about how to a live a great life simply and elegantly than anyone else on the planet. However, they are prone to errors in arithmentic, by which I means there is a lot of things get swept under the rug in Italy. It's part of their culture, and everyone there knows the rules of the game. For Italians this is just part of life.
However, in international finance this kind of shennanigans has consequences. I will wager that the Italians have hidden an enromous amount of debt in all kinds of obscure off-blanace sheet instruments. Berlusconi knows this, and he was warning everyone that the worst is yet to come. He thought it was OK to blab because he's a private citizen now, but he got severely whacked for his indiscretion. Spain is warm up act for Italy.
US citizens are prone to arithmetical mistakes. Miscalculations, as they call them.
I have to admit that we Americans are stupid, especially with Obama having a 50/50 chance of re-election
Yes indeed. But Italians have always known they have been governend badly. Thus, they focus on life and under the carpet sweeping. Americans haven't realized yet they too have been governed badly, but they are a few centuries behind the guidon.
Buy Gerolsteiner not Perrier.
liquid gold works for me! Or it could be/ WIKI /XAU
met Carlin once. I was waliking out of the mens room in a small eatery. He says...whoa...did you wash your hands? guy was always on and up for a laugh..
I liked a lot of Carlin's stuff....especially the Baseball/Football comparison ! It was funny, life affirming and flattering to America ! Some of his nastier populist "Occupy Wallstreet" type of humour made me a little uncomfortable ! Monedas 1929 Always Nasty And Life Affirming Humour Tour PS: Did Carlin have the confidence and credibility to use words like "nigger" once in a while....? Monedas' PC Watch
Carlin was /is awesome! I love that guy! POSTUMOUSLY
Gann says...watch Venus
Why can't I translate . Figured it out. Just like 777 did.
Short covering/ because London is closed thru Thursday. Ya better run for cover! Mental Health will Drive Ya mad
Testing
Confirm the trade. based on timelines.
I'm looking at guages in a jet?
Global Debt Crisis
The greatest private fraud of human history.
Who are the great fraudsters who are becoming the murderers of the human kind? How does the economy "illness" threaten Democracy and the freedom of people?
http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
---------------------------------
By knowing what happened in indebted Greece, where loan sharks created “bubbles” and the current inhuman debt, one can understand the inhuman plan in total ...understand where this plan started just to bring all states at the same end ...understand how this type of plans are established...
this too shall pass
i can't tell if most of folks here are jews but let say no...
hence i think it is worth to remind that the Holy Roman Catholic Church was very quickly overhauled by jews... then by masons (=jews)...
so you cannot honestly write such comments...
i know goyim are weak but jews are evil... so...
always think about the source of the problem huh
You need to read up on Zionism vs. regular Jewish people.
And no, I am not Jewish.
Well then the problem today is Italy, but Spain is still in the tightrope, Greece continued in the sump, and new countries such as Cyprus to the rescue.
Then we are surprised by a PMI of 46 in eurozone.
Show that abaout spanish banking system:
http://agstock.blogspot.com.es/2012/06/bank-run-in-spain.html
Jeezu, I hate religion at the best of times, but on this blog. ffs
it was a matter of time before market got this - why would someone borrow at 3yr LOW interest and invest in ITalian bond crap?
LTRO was a chance to restructure balance sheets - an opportunitty to restructure balance sheets and bifurcate positions to get into better quality at lower carry cost while ditching crap.
I said it at the time, and look at divergence in "quality" vs non-quality assets since then.......
here cometh the 4 horsemen of the apocalyse ...
Wall Street CEO Pay Rises 20% With KKR’s Kravis No. 1
http://www.bloomberg.com/news/2012-06-05/wall-street-ceo-pay-rises-20-wi...
It is clear that the crisis in Europe is growing every day and the economic situation deteriorates rapidly. The origin of this situation is almost the same in all countries of that region. From my point of view, it is logical that somehow all these countries will reflect the economic crisis they face. were first peripheral countries like Portugal, Greece, Ireland. Then it is up to some of the most important countries such as Spain and Italy. Later we play for France. ... and then what will happen to Germany?
A good read for you folks out there right now is Born In Blood. The Knights Templars thought the Pope had their back, and got screwed over bigtime.
Looks like we are headed back to the Dark Ages again, Landlords (banksters) and us Serfs.
duplicate