Another European Market Implosion On Weak Italy Auctions, Tremonti Resignation Rumors, Deteriorating Economic Data And Earnings Misses

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Thu, 07/28/2011 - 07:13 | 1500559 Josephine29
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Yes I could see something was going on when I spotted this on my twitter feed.

The Swiss Franc has surged to a new high against the Euro of 1.144 in the last hour. Someone wants a safe haven and they want it badly... @notayesmansecon
Thu, 07/28/2011 - 07:34 | 1500573 ratso
ratso's picture

Right you are and the Swiss hate the pressure it puts on them.  

The problem for the euro is that it can't be fixed.  The extent of the problem has been both underestimated and understated by the ECB and the EU.  To make it worse, they have openly confessed to use lying as a method of calming the markets.  So, what they say can not be believed when they give reassurances.  

To make things worse, it will not take much to push Italy into a default position - a new recession plus an increase in rates will probably do the trick.  After that comes the deluge.

Thu, 07/28/2011 - 07:23 | 1500566 Sudden Debt
Sudden Debt's picture

So far retail sales look terrible.

Saturn has a first time loss which never happend before.

Carefour is bleeding and so does Delhaize....

And don't forget that they are all selling at bleeding margins so most of them can't handle this downfall and yet they all start to discount like crazy.

In Belgium, inflation has run up to 4% officially so if you discount that from their sales numbers you'll realize that volume must have taken a severe beating.



Thu, 07/28/2011 - 07:42 | 1500581 PeeTee
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Official and inflation are two words. They shouldn't be used in one sentence.

Thu, 07/28/2011 - 07:22 | 1500567 kaiten
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So the rumour thingy was successful, it pushed the yields up. Someone hates the euro very badly.

Thu, 07/28/2011 - 07:31 | 1500569 qussl3
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Shit blows up when those that can balance their books have to pay for those that cant.

Or wont.

Thu, 07/28/2011 - 07:40 | 1500577 kaiten
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Which country has a balanced budget? I dont know about any. Do you?

Thu, 07/28/2011 - 07:48 | 1500587 qussl3
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Singapore should run a surplus this year.

Debt to GDP isnt pretty tho.

EDIT: Whoops, out of context.


You point just reinforces the shitshow the EU is in.


Thu, 07/28/2011 - 08:05 | 1500605 kaiten
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Well, at least the US has a prudent fiscal and monetary policy. Someone has to lead ... down to abyss.

Thu, 07/28/2011 - 07:27 | 1500568 disabledvet
disabledvet's picture

hi ho silver. i sense "aggressive Spanish banks" might have a little "surprise" in the sense that they may remain...aggressive.

Thu, 07/28/2011 - 07:32 | 1500570 chump666
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german dax down and dow futures up? i don't think so.

Thu, 07/28/2011 - 07:34 | 1500572 youngman
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Has anyone figured out why the European Bond markets are failing..but the US bond markets seem to be fine....seems is the key word....I think there is and under the table market for the USA...but they show good auction numbers always...

Thu, 07/28/2011 - 07:38 | 1500576 qussl3
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The US problems are like punching yourself in the face, you can stop anytime you want.

The EU is like getting raped by grizzly, you dont really have a say.

Thu, 07/28/2011 - 09:09 | 1500688 luigi
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When the Grizzly calls you "friend" and "ally"...

Thu, 07/28/2011 - 07:40 | 1500578 Quintus
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I think we need look no further than JPM's derivatives book (What is it now $80 trillion notional?) to understand why there is always a bid under the UST.  It has been clearly identified that there is no end-user for these unbelievable volumes of interest rate derivatives, however they do, by means of their structure, create artificial demand for Treasuries.  

JPM's derivatives book is the black hole at the centre of the global financial ponzi.

Thu, 07/28/2011 - 07:39 | 1500579 westboundnup
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Smells like (Credit) Suisse cheese.

Thu, 07/28/2011 - 07:43 | 1500582 Tao 4 the Show
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The politicians in Italy ought to be worried if they have to go the austerity route. The country has an enormous number of cars w/drivers for politicians, and these guys are seen constantly on the highways. Either they armor those things, or I think they won't last long. The problem in Italy is not early retirements, etc, but rather corruption in the system and organized crime (it's not just a cliche).

Thu, 07/28/2011 - 07:43 | 1500583 oogs66
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The bailout plan is already failing.  It hasn't even lasted a full week.  Once we get the debt ceiling lifted, we can see a bigger sell off. 

Thu, 07/28/2011 - 07:45 | 1500586 eurusdog
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fears of a "premature end to euro are unfounded." At least they are now admitting there is an end, even if it isn't pre-mature.

Thu, 07/28/2011 - 07:55 | 1500593 youngman
youngman's picture

Even the talking heads on TV can´t figure it out.  I sure as hell can´t.  To Me Gold and Silver should be skyrocketing...its not.  Its not gaining as fast as Amazon or Apple.  A toy seller or a Toy maker.  They will pass the Boehner deal today..and the Senate will tank it..and then a 2.5 trillion deal...probably with some vote buying pork attached will get passed....we will then have 17 trillion in debt......and I also think a downgrade....but the auctions will still be sucessful I think...I just want to know who is buying and why.....I am having a CSI moment....even when I am drunk I would never buy any Treasuries..never...there has to be another story that I am missing somewhere...

Thu, 07/28/2011 - 08:12 | 1500613 ZeroPower
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Cool story bro

Thu, 07/28/2011 - 07:55 | 1500594 Highrev
Highrev's picture

I'll go out on a limb and say that the selling in Asia and Europe is due to the need to raise cash to cover losses back home in the States.



Thu, 07/28/2011 - 07:56 | 1500595 Troy Ounce
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A warning that all those old hippies on Eurorail must remember:

  • E pericoloso sporgersi
  • Nicht hinauslehnen
  • Do not lean out of the window
  • Niet uit het raam hangen

Engraved in my consiousness, now more than ever: Be careful, man. Buy gold

Thu, 07/28/2011 - 08:25 | 1500623 Monday1929
Monday1929's picture

It is called Deflation. Yes, junk me, but this Deflationist is a big believer in Gold and Silver. But they must be traded/hedged, like anything else. Some ZSL on the "Miracle debt ceiling deal" sounds prudent.

(This was supposed to post under the guy wondering why US Bonds are not collapsing and Gold is not soaring)- you guys SHOULD wonder why Gold is not at $5,000 an oz.

Tue, 08/23/2011 - 23:53 | 1593676 karmete
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