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BlackRock Responds To Zero Hedge Query On Its Italian Debt Exposure

Tyler Durden's picture


Earlier we asked some simple questions regarding BlackRock's sovereign debt exposure. Multi-trillion asset manager BlackRock responds:


Hopefully this response will satisfy the market and make it comfortable with BlackRock as an intermediate-term going concern. Then again clarifications such as this one by other Blackrock professionals, namely that the market is wrong, probably will not help:


So, what happens if the spreads do reflect fundamentals? Will Blackrock apply Mark to Market to its Italian holdings? And perhaps BLK can follow in Jefferies' footsteps and be so kind to break down it gross and net exposure for all to see? After all, there is nothing to hide among its "nominal exposures."

More from Bloomberg:

BlackRock Inc., the world’s biggest money manager, said it’s “comfortable” holding intermediate Italian bonds as a surge in yields triggers concern the collapse of the government will force the nation to seek a bailout.


“Our view has been that a solution to stabilize European sovereign and financial markets is very far from conclusion, and thus, maintaining very nominal exposures to some of the countries with substantial refinancing needs was the right portfolio posture,” BlackRock Chief Investment Officer Rick Rieder said in an e-mailed statement to Bloomberg News.


On Oct. 13, Rieder said on Bloomberg Television’s “Inside Track” with Erik Schatzker that BlackRock was buying Italian debt given improved prospects for a resolution to the euro zone sovereign debt crisis. Italian 10-year notes, which finished today at 7.25 percent, traded at 5.82 percent on Oct. 13.


"The ultimate outcome we think is going to be constructive,” as far as European policy makers’ efforts to contain the crisis, Rieder in the Oct. 13 interview.


“We have become more comfortable with the levels of some of the debt, like some intermediate Italian bonds,” Rieder said in the statement today. “These levels will foster a greater sense of urgency towards an ultimate European solution. However, we still maintain a very conservative posture here and see a number of hurdles which still have to be cleared before growing positions.”


In a separate Bloomberg television interview on Oct. 21, Rieder said BlackRock remained a buyer of Italian government debt as European policy makers were set to gather to address the region’s sovereign debt crisis. “Italy is attractive,” Rieder said during an interview on “InBusiness With Margaret Brennan” on Bloomberg Television that day. Euro finance ministers meet on Oct. 21, followed by ministers from all 27 European Union countries the following day.


We are encouraged that policy makers appear to be meeting and addressing the challenges implicit in some of the recent proposals, and think these debt levels require policy movement and decision-making,” Rieder said in the statement today. “We are optimistic that this will happen over time, but still think that markets will be stressed until that time comes, and thus are maintaining a very conservative posture.”

In other words, BlackRock is betting, hopefully not the house, that Italy is Too Big To Fail and someone else will not make a case study that could cost the company billions. Surely to former Lehmanite (and former vice chairman of the all important TBAC) Rick Rieder, this is prudent risk management. Unfortunately, it did not quite work out for the Norwegian sovereign wealth fund's foray into Greek "hold to infinity" investing.


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Wed, 11/09/2011 - 16:16 | 1862688 Conrad Murray
Conrad Murray's picture

Hang them all.

Wed, 11/09/2011 - 16:18 | 1862692 Smithovsky
Smithovsky's picture

BlackRock's share price does not reflect fundamentals.

But in a few days it will.  

Wed, 11/09/2011 - 16:23 | 1862730 Hard1
Hard1's picture

Italy's fundamentals are that their massive debt needs a 30% haircut at least to bring debt to sustainable levels in perpetuity (coverage of interest payments).  That is if nothing else happens to dissapoint.  Oh... wait..... did I say  40% haircut?

Wed, 11/09/2011 - 16:28 | 1862775 ratso
ratso's picture

Blackrock "is comfortable with intermediate bonds".  That can't possibly be true.

Wed, 11/09/2011 - 16:31 | 1862798 Git_Naked
Git_Naked's picture

Love the title of this post. Well done, gents.

Wed, 11/09/2011 - 16:34 | 1862817 dlmaniac
dlmaniac's picture

"what happens if the spreads do reflect fundamentals?"

Declare it a non-credit event and apply some Mark to Myth accounting. All will be fine.

Wed, 11/09/2011 - 16:32 | 1862802 Comay Mierda
Comay Mierda's picture

cant wait to see the blackrock bankruptcy filing to see how much they owe CNBC for pump fees

Wed, 11/09/2011 - 16:46 | 1862884 Hippocratic Oaf
Hippocratic Oaf's picture

Mark to markets?!?!?!?!? Tyler..........when does that ever Happen?

Wed, 11/09/2011 - 18:09 | 1863306 RiverRoad
RiverRoad's picture

Let those chips fall.....

Wed, 11/09/2011 - 17:02 | 1862949 Mactheknife
Mactheknife's picture

Blackrock full of shit.

Wed, 11/09/2011 - 16:40 | 1862848 Ag1761
Ag1761's picture

You didn't say 40%, I distinctly heard you say 60% my good man.

Wed, 11/09/2011 - 16:22 | 1862737 SGS
SGS's picture

Mayday Mayday - BlackCock Down!

Wed, 11/09/2011 - 19:44 | 1863679 I did it by Occident
I did it by Occident's picture

don't worry, maybe Dr. Bernanke will prescribe some Viagra for the unfortunate patient. :)

Wed, 11/09/2011 - 22:26 | 1864242 Buck Johnson
Buck Johnson's picture

No kidding, they are going to really feel it.  Over 7% and still climbing, they think that Italy will be bailed out but who will pony up the trillion or so to do it or calm the market? 

Wed, 11/09/2011 - 16:44 | 1862874 jdelano
jdelano's picture

Uh--anybody notice the reverse flash crash?  Did this really happen?:

Wed, 11/09/2011 - 16:46 | 1862881 Panafrican Funk...
Panafrican Funktron Robot's picture


2nd week October:  There's no way in hell the 10 year tops 6%.  We're a buyer.

3rd week October:  There's no way in hell the 10 year tops 7%.  We're doubling down.

LOL Blackrock.

Btw, speaking of Erik Schatzker, does anyone else tend to want to beat his face with an iron mallet everytime he appears on the air?  He's like a mutant SuperDouche.  

Wed, 11/09/2011 - 17:02 | 1862944 GeneMarchbanks
GeneMarchbanks's picture

'Btw, speaking of Erik Schatzker, does anyone else tend to want to beat his face with an iron mallet everytime he appears on the air?  He's like a mutant SuperDouche.'

You're not alone, friend.

Wed, 11/09/2011 - 16:53 | 1862911 HedgeAccordingly
HedgeAccordingly's picture

in this case.. it is not bro's before hoe's LOL -

Wed, 11/09/2011 - 17:03 | 1862951 Freddie
Freddie's picture

Blackrock = the new Lehman.  I sometimes get them confused with Blackstone.  More scum.

Wed, 11/09/2011 - 18:08 | 1863294 SilverDoctors
SilverDoctors's picture

Nice work Tyler! Keep up this sort of exposure to the MF Global customer assets theft.
For those who haven't noticed, the CME is stating that $80 million worth of COMEX REGISTERED gold and silver are unavailable for delivery due to the MF Global bankruptcy. 
Did Corzine use $80 million worth of clients gold & silver warehouse receipts as collateral for a short term $400 Million loan?

The only way ANYONE at MF goes to prison over this is if the MSM reaches critical mass and the public becomes outraged.  Zerohedge can push this story to critical mass.  Don't let up!

Wed, 11/09/2011 - 18:12 | 1863320 RiverRoad
RiverRoad's picture

Yup.  Keep forcing those MSM bitches to print bro'.

Wed, 11/09/2011 - 16:16 | 1862689 fuu
fuu's picture


They still use fundamentals over there? Trouble.

Wed, 11/09/2011 - 16:19 | 1862714 hack3434
hack3434's picture


Wed, 11/09/2011 - 16:25 | 1862761 GeneMarchbanks
GeneMarchbanks's picture


Wow. That is not going to end well...

Wed, 11/09/2011 - 16:27 | 1862769 fuu
fuu's picture

Nope, that's going to leave a mark.

Wed, 11/09/2011 - 16:16 | 1862691 alien-IQ
alien-IQ's picture

Tyler...I think you just opened up one big-ass can of worms.

this is gonna be fun.

Wed, 11/09/2011 - 16:26 | 1862764 defn8Dog
defn8Dog's picture



Wed, 11/09/2011 - 16:18 | 1862693 TruthInSunshine
TruthInSunshine's picture

Blackrock respectfully asks the already compliant media (thank your for continuing cooperation, main stream media-government proxies of The Treasury & non-governmental but sometimes governmental Federal Reserve 'Bank'), and more likely, intelligent, inquisitive bloggers, backed with facts and data, to refrain from asking relevant questions pertaining to the compost heap of toxic assets it has accumulated en masse.


Thank you,



Wed, 11/09/2011 - 16:19 | 1862706 BoNeSxxx
BoNeSxxx's picture

+1 Homerun TIS

Wed, 11/09/2011 - 17:07 | 1862973 catacl1sm
catacl1sm's picture

HEY! Compost is useful! Italian bonds... not so much.

Wed, 11/09/2011 - 17:25 | 1863077 Freddie
Freddie's picture

Obama and Al Waleed's US media.

Wed, 11/09/2011 - 16:17 | 1862694 ex VRWC
ex VRWC's picture

Deeper.  Let me shove my head deeper into the sand.  Eventually I will see no evil, hear no evil, and you won't be able to hear me speak it either.

Wed, 11/09/2011 - 17:55 | 1863217 Optimusprime
Optimusprime's picture

But your butt will be sticking up in the air.  Hmmm.

Wed, 11/09/2011 - 19:51 | 1863700 I did it by Occident
I did it by Occident's picture

Paging Banzai! 

this would be great cartoon. 

multiple ostrich heads (all the usual suspects Fed, IMF, ECB, etc.) poking out of the ground in china and one of them says, "hey guys, umm, do you think it's time to acknowledge reality?"



Wed, 11/09/2011 - 16:17 | 1862697 Note to self
Note to self's picture

Can we have some numbers with that?

Wed, 11/09/2011 - 16:18 | 1862698 Amused2Death
Amused2Death's picture


Wed, 11/09/2011 - 16:18 | 1862700 FubarNation
FubarNation's picture

The power of ZH. 


It is becoming greater and greater.  Frightening and enlightening at the same time.



Wed, 11/09/2011 - 16:22 | 1862731 alien-IQ
alien-IQ's picture

"You shall know the truth, and the truth shall make you mad"

Aldus Huxley

Wed, 11/09/2011 - 18:15 | 1863333 RiverRoad
RiverRoad's picture

Enlightening is the MO.  Frightening?  That's relative.

Wed, 11/09/2011 - 16:18 | 1862701 dpr10
dpr10's picture

you kick ass tyler...awesome..

Wed, 11/09/2011 - 17:32 | 1863117 Freddie
Freddie's picture

BlackRock - the Joe Paterno of Wall Street.

Wed, 11/09/2011 - 16:19 | 1862703 Dr. Nancy
Dr. Nancy's picture

All that's happening is predictable, as there are 7 stages that every
major economy goes through. Those who know how it works profit & massive
wealth is transferred to them. Several months ago I learned this
information from a millionaire whose site I found & am sharing it with
everyone I know.
His free video

"How To Create Incredible Wealth in Today's Economic Crisis"

is at:
Hope this info helps everyone as much as it has me.
Dr. Nancy

Wed, 11/09/2011 - 16:21 | 1862727 WineSorbet
WineSorbet's picture

Please pedal your pablum somewhere else.

Wed, 11/09/2011 - 16:22 | 1862733 Note to self
Note to self's picture

Clearly you have lost you way on this very confusing internet.  Its a series of tubes, you know.

Wed, 11/09/2011 - 16:29 | 1862782 jcaz
jcaz's picture

Thank you, Dr Nancy-  you're a breath of stupidity in a sea of enlightenment;

You're why I remain short.

Wed, 11/09/2011 - 17:29 | 1863099 RichardP
RichardP's picture

Actually, I think remaining short has something to do with growth hormones.

Wed, 11/09/2011 - 16:37 | 1862835 Piranhanoia
Piranhanoia's picture

she found a millionaire.  The dream of a professional whore.

Wed, 11/09/2011 - 16:38 | 1862841 Vergeltung
Vergeltung's picture

MMmm, spam. delicious.


Wed, 11/09/2011 - 16:38 | 1862843 pods
pods's picture

I will sign up just to protect all the money that the Nigerian Minerals Minister is going to deposit in my bank account.


Wed, 11/09/2011 - 16:49 | 1862896 Taint Boil
Taint Boil's picture

Dr Nancy

Suck the puss out of my golfball sized boil.

Wed, 11/09/2011 - 17:07 | 1862941 RobD
RobD's picture

Boil? Did you say boil? Like this one:



Wed, 11/09/2011 - 17:28 | 1863095 Freddie
Freddie's picture

Dr. Nancy - did The "Elevation Group" remove you pen*s to change you from Nan to Nancy?   Do you miss you p*e p*e?

Wed, 11/09/2011 - 16:19 | 1862711 Irish66
Irish66's picture

can't stop laughing

Wed, 11/09/2011 - 16:19 | 1862713 yogibear
yogibear's picture

No need to panic. Lehman Brothers is well capitalized and has little expose to CDO/housing. 

Wed, 11/09/2011 - 16:34 | 1862814 GeneMarchbanks
GeneMarchbanks's picture

You'll notice they are not denying the exposure, just saying the current situation isn't reflecting fundamentals.

It'll get better ... soon.

Wed, 11/09/2011 - 18:19 | 1863346 RiverRoad
RiverRoad's picture

Anybody lookin' to buy a bridge????

Wed, 11/09/2011 - 16:19 | 1862716 chaartist
chaartist's picture

ZH, you impress me with your analysis every day. thank you

Wed, 11/09/2011 - 16:40 | 1862850 pods
pods's picture

And how the hell did you get a picture of my wife?


Wed, 11/09/2011 - 17:10 | 1862991 Josh Randall
Josh Randall's picture

You talkin' to me?

Wed, 11/09/2011 - 16:19 | 1862717 Timmay
Timmay's picture

Het Blackrock, you are playing this the wrong way. You should say, "Yeah, were f-ed, and if we go down we will drag everyone else down with us unless there is a bailout!"

What's with the denial crap??

Wed, 11/09/2011 - 16:19 | 1862718 rambler6421
rambler6421's picture

How dumb could black rock be and buy Italian debt.  I'm not in the financial industry and I know that.  Use some common sense. 

Wed, 11/09/2011 - 16:28 | 1862780 Sancho Ponzi
Sancho Ponzi's picture

My guess: Blackrock, like MF Global, was confident Tourette Timmay would succeed in his push for a massively leveraged EFSF toxic pile of dying piig shit.

Wed, 11/09/2011 - 16:29 | 1862785 JLee2027
JLee2027's picture

Blackrock has become a Bagholder.

Wed, 11/09/2011 - 16:38 | 1862842 WTF_247
WTF_247's picture

They are still using the old playbook that Buffet uses -


Buy the fear - when no one wants it and it seems to be on the edge - go all in!


That may have worked in the past many times - but it does not every time.  I would agree that it really seems stupid to be long ANY of these bonds, even with CDS on them - they will not be honored anyway

Wed, 11/09/2011 - 18:26 | 1863388 RiverRoad
RiverRoad's picture

They all thought they were buying those old Asian Tiger high yield bonds.  Worked for Templeton and those 15% returns were great then, but hey, you gotta stop fighting the last war folks......Caught Corzine with his pants down.

Wed, 11/09/2011 - 16:19 | 1862719 Eally Ucked
Eally Ucked's picture

That's nice response but what it says really?

Wed, 11/09/2011 - 16:19 | 1862721 New Revenue
New Revenue's picture

So, Rieder is comfortable.   Same guy who watched his own fund blow up while he was "comfortable" with Lehman exposure back in the day.   

Wed, 11/09/2011 - 16:30 | 1862787 ghostfaceinvestah
ghostfaceinvestah's picture


Reider set up R3 in May after leaving Lehman, where he was head of its global principal strategies group. Lehman, like BlackRock, was an early backer of R3, owning a 45% stake in the firm, and the hedge fund bought about $5 billion in assets from the soon-to-be-bankrupt bank.

Lehman sold its stake in R3 in October, after filing for bankruptcy. R3 was also burned by the asset freeze stemming for the bankruptcy, leading to most of its roughly 30% in losses last year.

Wed, 11/09/2011 - 16:56 | 1862927 oogs66
oogs66's picture

Pesky things like facts :D

Wed, 11/09/2011 - 17:02 | 1862943 TruthInSunshine
TruthInSunshine's picture

Yep, nothing like instilling confidence (in what is a transparent ruse and farce to begin with) in Blackrock's obvious large, toxic exposure by putting ex-Lehmanite Rieder (who had something to do with Lehman's Risk [mis]Management at his old stomping grounds) out there to assure everyone that specifics need not be provided, but that the Blackrock boys are on top of the situation (after the risk accumulation has already occurred).

Wed, 11/09/2011 - 16:19 | 1862722 wang (not verified)
wang's picture

so I guess one should avoid using iShares ETFs (just in case) 

Wed, 11/09/2011 - 16:20 | 1862725 TulsaTime
TulsaTime's picture

that clears is all up, once and for all......NEXT!

Wed, 11/09/2011 - 16:22 | 1862732 Miss Expectations
Miss Expectations's picture

Multi-trillion asset manager BlackRock responds...

Ain't that something?  Well done you!

Wed, 11/09/2011 - 16:37 | 1862831 Note to self
Note to self's picture

Clearly, a nerve has been hit.

Wed, 11/09/2011 - 17:22 | 1863057 Mentaliusanything
Mentaliusanything's picture

Multi something. Could be personalities.

But yet - outstanding!

I Vote Z hedge as The New SEC, Because IT can watch great porn AND do its work, all at once.

Now go rattle Goldmans gilded cage, those fuckers are in deep doo doo with the Bunga Bunga as well

Wed, 11/09/2011 - 16:22 | 1862734 Cdad
Cdad's picture

Nice respone.  They are comfortable with Italian debt...even as the rest of the Street throws in the towel...or lies about its exposure.

As a reminder, it was none other than Larry Fink that said on the BlowHorn [CNBC] not two months ago, "Make them buy equities."  Why?  So Larry could sell them and use the proceeds to buy worthless Euro debt?  

Reaching for yield, Larry?  Good luck with that, you fuck.


Wed, 11/09/2011 - 16:22 | 1862738 slaughterer
slaughterer's picture

Nice work ZH: JEF, BLK, MS, DB, GS--they are all in the Italian death spiral together.   

Wed, 11/09/2011 - 16:27 | 1862771 ghostfaceinvestah
ghostfaceinvestah's picture

Just wait for the Spanish debt spiral to begin.  Draghi will be printing overtime.

Just how much has the ECB lost so far, assuming they had to mark to market?

Wed, 11/09/2011 - 16:30 | 1862786 centerline
centerline's picture

None wants the other to know their position.

"Yeah, sure, we are still in the water... water is fine... no problem... keep swimming!"

Even more likely is that they are all trapped in the pool and can't unload or adequately hedge without showing their cards.


Wed, 11/09/2011 - 17:29 | 1863103 Mentaliusanything
Mentaliusanything's picture

Yes - you have it. Masters of the Universe forgot their system is a closed system.

Imagine a closed cage full with those feral pigs circling each other. trusting no one but having a burning hunger of greed to fill their rapacious appetites. They will eat each other

Wed, 11/09/2011 - 16:48 | 1862895 chunga
chunga's picture

The JPMorgue - 6.6%. Don't forget

Wed, 11/09/2011 - 17:35 | 1863133 Freddie
Freddie's picture

Someone needs to push Blythe and Jamie into a wood chipper.

Wed, 11/09/2011 - 16:25 | 1862740 NOTW777
NOTW777's picture

someone at the WH must read ZH

looks like the christmas tree tax is in question

Wed, 11/09/2011 - 16:27 | 1862768 kito
kito's picture

stop reading abc news. you really will go blind and grow hair on your palms..........

Wed, 11/09/2011 - 16:36 | 1862824 tarsubil
tarsubil's picture

Hey, Kito, I'm over here!

Wed, 11/09/2011 - 16:37 | 1862836 NOTW777
NOTW777's picture

hey you should be smiling - DOG

i know i am with DXD and SPXU

Wed, 11/09/2011 - 18:34 | 1863415 kito
kito's picture

im still in the hoping tomorrow resolves that

Wed, 11/09/2011 - 18:08 | 1863296 RiverRoad
RiverRoad's picture

EVERYONE at the WH reads ZH.  They're scared to death of the truth.  McCain's been reading ZH too apparently.

Wed, 11/09/2011 - 16:23 | 1862741 Misean
Misean's picture


"TURN THOSE PRINTING PRESSES BACK ON!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

Wed, 11/09/2011 - 16:23 | 1862742 yogibear
yogibear's picture

Watch the chain of debt holders implode. It's quite now. We should see signs soon.

Wed, 11/09/2011 - 16:23 | 1862744 Catullus
Catullus's picture

"I'm very comfortable losing someone else's money, fuck you very much."

Wed, 11/09/2011 - 16:23 | 1862746 Vincent Vega
Vincent Vega's picture

So, Blackrock, how much more Italian debt would you like to own and at what price?

Wed, 11/09/2011 - 17:48 | 1863180 Zero Govt
Zero Govt's picture

didn't you read the response... they're stuffed to the gunnels with Itai debt ....gulp!

Wed, 11/09/2011 - 16:23 | 1862748 rubyruffruff
rubyruffruff's picture

tyler ur a beast......larry fink has 2b asking "who the fk is tyler durden?"   

Wed, 11/09/2011 - 17:22 | 1863053 Note to self
Note to self's picture

Bring me the head of Tyler Durrrrrrdennnn.

Wed, 11/09/2011 - 16:24 | 1862749 infinity8
infinity8's picture

keep hitting them on their nerves ZH!

Wed, 11/09/2011 - 16:24 | 1862751 InMisesITrust
InMisesITrust's picture

Mongo only game of life.

Wed, 11/09/2011 - 16:24 | 1862753 Eireann go Brach
Eireann go Brach's picture

Knock em down one by one Tyler, the fuckers will all fall..because on a long enough timeline.........

Wed, 11/09/2011 - 16:25 | 1862756 kito
kito's picture

because we all know blackrock is the greatest investor ever and NEVER make the wrong call...



Wed, 11/09/2011 - 16:25 | 1862759 Timmay
Timmay's picture

Is BlackRock based in China? This sounds like that article earlier describing the front door/back door analogy.


So, BlackRock, are you saving face??

Wed, 11/09/2011 - 16:41 | 1862857 Hephasteus
Hephasteus's picture

Blackrock and blackstone are impenetrable and you can never get a picture of their structure. They are heavily involved with the ponzi that funds both government and corporations. Shit deep into quant and run all the computer tech and medicine.

Wed, 11/09/2011 - 16:26 | 1862762 ghostfaceinvestah
ghostfaceinvestah's picture

That is FUCKING priceless - spreads on very liquid bonds don't reflect fundamentals!!!

What a fucking joke, they should be ashamed to release a statement like that.

Wed, 11/09/2011 - 16:28 | 1862765 Mercury
Mercury's picture

And perhaps BLK can follow in Jefferies' footsteps and be so kind to break down it gross and net exposure for all to see?

Uh... unless JEF’s net exposure reduction is suspiciously coincident with a BLK net exposure increase and they'd just as soon not draw attention to it.

Wed, 11/09/2011 - 16:27 | 1862770 ItsDanger
ItsDanger's picture

So, they're happy with losing money on that position.  Interesting.

Wed, 11/09/2011 - 18:33 | 1863408 RiverRoad
RiverRoad's picture

Right.  When you LOSE money on Wall Street you can't be arrested .....

Wed, 11/09/2011 - 16:27 | 1862774 Moocao
Moocao's picture

Fuck these Hedge Funds



Can we see our capital unlocked now so our Generation can get to work on building from the Ashes? Its already a done deal, just let it happen.

Wed, 11/09/2011 - 16:46 | 1862882 Dr. Engali
Dr. Engali's picture

If you are letting some white shoe boy from Wall Street or, Washington for that matter, dictate your future then you've got a lot to learn. Want a future? Don't participate. Buy Gold and silver, become self reliant and fuck the rest of them.

Wed, 11/09/2011 - 18:04 | 1863240 Zero Govt
Zero Govt's picture

well said Dr E

individualism the key to understanding and unlocking this collective shit-bollocks

self sufficiency is the way to go ....collectives are toast

Wed, 11/09/2011 - 18:35 | 1863422 azusgm
azusgm's picture

Go local, not alone.

Wed, 11/09/2011 - 16:29 | 1862779 TruthInSunshine
TruthInSunshine's picture

Upon waking up from his 3 pm drool-fest nap, Barton Biggs, upon hearing of something 'bad' happening in Europe and Italy (soon to be Spain & France), realizes he has some sort of financial exposure to some type of sovereign instrument 'over there' in his 20mm AUM super fund, at which point he angrily mumbles Damn You, Zero Hedge!, before sharting in his Depends and eating some candied prunes and praying to The Bernank.

Wed, 11/09/2011 - 16:30 | 1862788 Aunty Christ
Aunty Christ's picture

I suspect they are unloading their bonds while responding to the media..

Wed, 11/09/2011 - 16:31 | 1862796 Cdad
Cdad's picture

Forever young!  Goldman turns 99....yet again.

Wed, 11/09/2011 - 16:32 | 1862804 alien-IQ
alien-IQ's picture

I've got a feeling we're about to do some serious spelunking into the close.

I am Jack's smirking sense of satisfaction:-)

Wed, 11/09/2011 - 17:06 | 1862966 alien-IQ
alien-IQ's picture

Denied. :-(

I was really looking forward to some epic ugliness.

alas...the week is not over...

Wed, 11/09/2011 - 16:33 | 1862813 frostfan
frostfan's picture

So basically BlackRock is saying we're quite happy with our Italian position and oh, by the way, can you remove those margin requirements for a while?  I'm good for it, really....I'll bet ya a pizza!!!!!

Wed, 11/09/2011 - 16:35 | 1862819 Dr. Engali
Dr. Engali's picture

Shorts can't get enough of SEF. EPV is making a big move today with a 12% return. I am Anti-Robo

Wed, 11/09/2011 - 16:35 | 1862820 vote_libertaria...
vote_libertarian_party's picture

How many banks, pension funds, hedge funds, etc... THOUGHT they had CDS as hedges.


My guess it was huge.

Wed, 11/09/2011 - 16:36 | 1862826 writingsonthewall
writingsonthewall's picture


I can't believe this - he's finally got it! (I think) He can't explain it - but at least he can see it's happening. This is one of the seven signs of CRASH!!!!


Wed, 11/09/2011 - 16:36 | 1862827 lizzy36
lizzy36's picture

Time to average down...again.

What is Italy the 4th largest bond market in the world,LMAO that the BEST blackrock can come up with is "doesn't reflect fundamentals". Last time i hear that it was 2 weeks ago and Dick Bove was saying is about MF Global.

Wed, 11/09/2011 - 16:45 | 1862878 Vergeltung
Vergeltung's picture

did Bove really say that? wow. just wow.


Wed, 11/09/2011 - 16:48 | 1862894 GeneMarchbanks
GeneMarchbanks's picture

What did you expect, they're paralyzed or completely immobile at least. 3.6T AUM doesn't unwind so fast...

Wed, 11/09/2011 - 17:02 | 1862946 oogs66
oogs66's picture

They are used to making sure spreads don't reflect fundamentals - in their favor!

Wed, 11/09/2011 - 16:38 | 1862838 Undecided
Undecided's picture

Well gold is hitting the shitter today go figure...

Wed, 11/09/2011 - 16:42 | 1862863 dereksatkinson
dereksatkinson's picture

Indescriminate selling.  It's short term overbought anyways.  Selling shouldn't be too prolonged.

Wed, 11/09/2011 - 16:42 | 1862865 azusgm
azusgm's picture

USD chart explains a lot of the gold price move.

Wed, 11/09/2011 - 16:51 | 1862905 Undecided
Undecided's picture

If only they realized it was confetti also :)

Wed, 11/09/2011 - 16:43 | 1862872 seek
seek's picture

It's actually up, it's that everyone is jumping into USD so it makes the exchange less favorable.

Wed, 11/09/2011 - 16:41 | 1862854 Kickaha
Kickaha's picture

Bad day at Black Rock, baby!

Wed, 11/09/2011 - 16:41 | 1862858 yogibear
yogibear's picture

When Cramer gets out and defends Blackrock it's the kiss of death. We should see the Italian debt exposure signs soon. Like vaporization after a nuke is detonated.

Wed, 11/09/2011 - 16:42 | 1862866 tim73
tim73's picture

So how come Italy managed to plow through with the same debt load of 120 percent of GDP with 15 PERCENT interest rate on 10Y in 1992? It stayed about 10 until early 1996 and still no default. This is exactly how Americans lose money with shorting against Europe, either with eur-usd or bonds.

They think every Mediterranean country is just another Greece, without doing their homework. Just assumptions, no facts. Most of the debt is owned by domestic players in Italy, just like in Japan.

Wed, 11/09/2011 - 16:52 | 1862888 jdelano
jdelano's picture

No, most of the debt is not owned by domestic players.  52% is owned by foreign investors.  


oh yeah--and btw, debt doesn't matter UNTIL growth it?

Wed, 11/09/2011 - 21:02 | 1863963 onedb1
onedb1's picture

Actually even with zero growth ( though Italy has actually done marginally better than that) what matters is that debt is halted . What matters is overall tax receipts have to be greater than expenditure and in Italy there is ample manouevring for that.

 So I would tend to be on the unpopular side here, but Italy has quite some space to manouevre and needs to 'simply' show that its reforms are implemented precisely to achieve that target . They already are showing good signs with a primary surplus . Who else matches that ? the US ? hahahha . Am waiting for the show to kick off again when the debt ceiling is going to be raised once more , $15 trillion and counting ...

As private wealth in Italy is estimated to be a conservative 5 times current sovereign debt, the case for Italy is not the same as for Greece at all . Does private wealth in the US match Italy's ? Hahah. If the combined private and sovereign debt are taken into account who is in a better position ?

Growth is not the only parameter here, maybe you should get it ! Receipts vs Expenditure its that simple mate, not simply a matter of growth .Sack all those wasteful politicians, reduce state ownership , sack the unproductive public employee .Long Pizza anyday short KFC !!

Wed, 11/09/2011 - 16:42 | 1862868 monopoly
monopoly's picture

Analyst on the bubble channel advised we are buying gold for all the wrong reasons. it is just the momo crowd buying and that it is wrong for us to buy gold now. 

I just luv it. As long as I keep hearing shit like this I will add on every dip. Wonder how much this guy gets paid.

Wed, 11/09/2011 - 16:42 | 1862870 LawsofPhysics
LawsofPhysics's picture

Where's my fucking money Lebowski?

Wed, 11/09/2011 - 16:43 | 1862871 Curtis LeMay
Curtis LeMay's picture

Blackrock respects ZH and the Tylers. About damn time...

Well fucking done ZH

Wed, 11/09/2011 - 16:43 | 1862873 azusgm
azusgm's picture


No hot tubs, no private planes for you/y'all.

Wed, 11/09/2011 - 16:47 | 1862886 firstdivision
firstdivision's picture

Backdoor bailouts is where its at.

PPT is saving the day here

Wed, 11/09/2011 - 16:47 | 1862887 Cult_of_Reason
Cult_of_Reason's picture



They are even more complacent/clueless at BlackRock than many of us initially suspected.

Timberrr! Short BLK! Short the clueless overvalued pig in denial down to zero!

Wed, 11/09/2011 - 17:50 | 1863199 Curtis LeMay
Curtis LeMay's picture

They are even more complacent/clueless at BlackRock than many of us initially suspected.

Not so sure about that...

Blackrock ain't part and parcel of the problem like 200 West Street.

They may screw up on bets from time to time, and who doesn't, but they keep to themselves...

Wed, 11/09/2011 - 16:48 | 1862889 Cone of Uncertainty
Cone of Uncertainty's picture

Blackrock = Jerry Sandusky

Wed, 11/09/2011 - 16:50 | 1862901 Piranhanoia
Piranhanoia's picture

Pennsylvania is for lovers

Wed, 11/09/2011 - 16:49 | 1862897 nyse
nyse's picture

Since when have fundamentals mattered?

Wed, 11/09/2011 - 16:49 | 1862898 Racer
Racer's picture



Translation: we are completely confident our bad trades will be made good by taxpayers money

Wed, 11/09/2011 - 16:49 | 1862899 Piranhanoia
Piranhanoia's picture

They way ZH is taking them down, we only have 21 or so days left for the rest of the dealers to collapse under the weight of their ego.

Wed, 11/09/2011 - 16:50 | 1862902 Stax Edwards
Stax Edwards's picture

I would be careful staying short here once this rumor wears off.  Just saying guys, BlackRock WILL be fine. Hey TD,  I think you get more bang for the buck if you stick with smaller outfits ala JEF though.  Just one opinion.  Impressive drop though, lol

Wed, 11/09/2011 - 18:41 | 1863444 RiverRoad
RiverRoad's picture

Size doesn't matter.  Take a look back.

Wed, 11/09/2011 - 16:51 | 1862903 mfoste1
mfoste1's picture

i just laughed out lound in front of everyone whilst reading this

Wed, 11/09/2011 - 16:56 | 1862923 chump666
chump666's picture

well done zero hedge.  black rock the reality call from hell is ringing.  you best answer that call.  EU endgame is here.  now you write down that toxic sh*t.  you seen gold rallying prior to italy bond meltdown?   

take the pain now.

Wed, 11/09/2011 - 18:46 | 1863462 RiverRoad
RiverRoad's picture

Europe, in fact, has been on it's knees since WW2.  The Euro was a farce to begin with:  a scheme to enrich  the banksters/oligarchy and farces end badly; just take a look around.

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