EURUSD Dips Below 1.28 As All Hell Breaks Loose In Italian Financials

Tyler Durden's picture

Much to the chagrin of the US Department of Mass Disinformation, the market has completely ignored the ridiculous ADP data, and has focused squarely on what is happening in Milan where the serial halting of bank trading has resumed. Following the 4th unhalt of UniCredit, its stock is now down 15% on the day as it scrambles to catch up to the fair value represented yesterday courtesy of the rights offering to be about 43% below the market price. As a result while the robotic decoupling in the US continues, as somehow America is supposed to be able to import and export from and to itself and completely ignore that it has about $3 trillion in European bank exposure, the EURUSD has just dipped to below 1.28 for the first time in over a year. Lastly, not helping things is the already noted implosion of refiner Petroplus which just announced that access to all of its credit lines has been suspended, sending the stock down 20%. Looks like it will be a long, cold winter for Europe even as the US decouples to a Dow 36,000 mushroom cloud.

UniCredit - 4 halts and counting:

And EURUSD below 1.28:

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
slaughterer's picture

EUR/USD sure crashed into 2012 nicely. Too bad the ES is no longer tracking EUR/USD directly like in the "good old days."  ES would be 1,050 right now. 

MillionDollarBonus_'s picture

This is a perfect demonstration of the inherent political risks in backward countries like Italy. The US has have been able to ward off disasters of this magnitude with the advise of top economic advisors from institutions such as Harvard, Princeton, Dartmouth, Yale and MIT. People from all over the world flock to these world class institutions because they offer the most practical and groundbreaking academic instruction by the some of the most influential minds in the world. This is why I have long advocated setting up a world central bank which would help ALL countries get access to these brilliant minds. It simply isn’t fair that poor countries shouldn’t have access to top Ivy League economic advisors, and to suggest that this advice should be retained within elite western circles is quite frankly racist.

WonderDawg's picture

That is AWESOME! One of your best yet, MDB. I bet you can't keep a straight face when you're typing that shit.

hedgeless_horseman's picture



So maybe Latvians will get to leave the country for vacation and buy German cars?

Oh regional Indian's picture

Half-life of a Lie shortening by the day now. 

Funny, kids (7-8 year olds) here in India are discussing 2012 when everyone is going to die. True or not, what a meme. What a masterful meme. The undercurrent of fear is just what the PTB know how to tug on best.

Terry-risem, wars, bombs, threat levels, all around instability and now 2012. i predict 80% of the wisest ones on this site too will get their jewels handed to them for staying in just s little extra...

Downwind impact on India is pretty ghastly. The rupee has been allowed to crash in the past 4 months.... and still the nifty keeps right on sinking.



smlbizman's picture

his one and done approach is bot like...cast your line and see what fish you catch...although it is hysterically funny paranoia leads me to believe it is more to it than comedy...

fnord88's picture

agree. The thought of the welcome said ivy graduates deserve in 3rd world countries makes me giggle. It's not fair. They do deserve them, I think they know what to do with them. Lets send them all ASAP.

UP Forester's picture

Yes. The advise of the some of the Ivy League brains would surely raise the 3rd world countries, up to 4th world countries!


LawsofPhysics's picture

I agree, MDB must write for Jon Stewart.  There are but a few who can pull off such satire.  This would be comedy gold when delivered by a professional.

Long-John-Silver's picture

I've come to the conclusion that  MillionDollarBonus_ is not a single person but a group of people. These people do nothing but post their economic theories in an effort to convince US that they are doing the right things to correct the economy. It's obvious these people live in a bubble. They grew up cloistered in an upper income home, attended private schools, sent to the finest schools, and have no idea what life is really like for the common man (or woman if you take things literately).

Lost Wages's picture

Everyone knows that MDB is the collective name of a group of Priests, just like Shakespeare was. Except today's priests are unelected kleptocrats in white lab coats.

ceilidh_trail's picture

MDB is the Tyler Comedy Team. A great break from the goofiness of what we have to deal with 8 to 5.

Hugh_Jorgan's picture

Why even entertain the idea of commenting on the substance/content of anything MDB posts?

Laugh at it's ludicrous sophistry in private if you must, but know that not even MDB believes a single word that MDB posts.

economics1996's picture

MDB here is a idea that is simple, get rid of central banks and go back to gold and silver as the reserve.  It works well.

Lord Blankcheck's picture

Governments always debase Gold and Silver too.Been there done that.





Hugh_Jorgan's picture

If we actually priced Gold and Silver by market supply and demand (vs ETF fiat) it would not be an issue. But sadly they would never allow that to happen in today's status quo.

GMadScientist's picture

Maybe they can ask the IMF for an intro.

Not one of your best parodies, I'm afraid.

pepperspray's picture

The same ones who can't complete advising paperwork for their students

blueridgeviews's picture

Where is it written in life that everything is fair?

whoisjohngalt11's picture

Yes sir this thinking definately needs to be exported, or expatriated ...

eureka's picture

Ehm. Also, in other sarcastic and rose colored glasses perspectives, one can expect Larry Kudlow to talk about "King Dollar" today - he might even go as far as to praise the Bernank for a strong dollar policy. Obviously reality based people stopped watching Larry and his babble years ago.

A somewhat tanking EUR is good for Europe. EU exports will be more affordable to US'ians, who also will be happy - because their recovery is consumer driven, right?  What, it has to be US consumer goods? But US doesn't make things anymore does it - except in China, right?

Remember George Will, one pompous neo-con knucklehead? A few years ago he contemptuosly said "Russia is an extractor-nation"... - 

Or how about one of the endless parade of arrogant US executives, who also visit GE's money-TV station:  "US is not a price-taker, US is a price-setter"...

Funny how life immediately turns everything one says upside down, isn't it?

Oh, didn't the old Greeks have a view and a saying about that? Something like hubris and nemesis... - yeah, but they were Europeans - what do they know?

Keep looking across the pond for clues to the future, Gentlemen.

MillionDollarBonus_'s picture

I'm not taking to your anti-American sentiment, eureka. Our Federal Reserve is holding Europe together by a thread via USD swap lines and other liquidity backstops. As a born American, I take personal credit for this.

Long-John-Silver's picture

Can I pull the lever on the guillotine when your neck is under the blade? I'm saving this post because you just took credit for the coming disaster WHEN the EURO crashes and takes our economy down with it.

economics1996's picture

Not much longer.  Central banking always makes the problem worse.  Bigger booms and bust.  Now its time for the bust.

eureka's picture

MDB - but Sir, you misinterpret - my sentiment is precisely pro-US'ian - because, as you state, The US'ian Central Bank, the Private Federal Reserve Bank, run by so many native born "Americans" (though with funny other-culture'ly last names), is so brilliantly feeding the entire world its glorious USD - and thus pulling the world like a brave Little Locomotive Who Can - it is the Can Do Spirit for which the US is so famous - which undeniably pulls the entire rest of the world, which as we know, is very lazy indeed.

So - for your brilliant dfisagreement with me - in spite of your mis-interpretation of my admiration for all things US'ian - and especially so US'ian USD levitation magic - I must green arrow you, and I did, and crawl myself into a dark corner for repeated mea culpas, which I so richly deserve, along with all Europeans, whether real or wannabe, for suggesting that it is funny how life often turns around on you - and even more so for suggesting that that observation was made by Greeks more than two thousand years ago.

Obviously, everything good and true, is and was made in the US. And before they existed on Earth in the US - all good and true things existed in heaven in their spiritual form, where they were being prepared to be projected into the world via the US. If this particular meta-construct I here refer to strikes you as somewhat Mormon in its reference to divine pre-existence of Earthly creatures and concepts - it is because you are absolutely correct; it is kind of Mormon'ish.

As everyone in the US knows, Mitt The Romney-Man, is kind of a Batman - even in more ways that one might suspect - and - he is a Mormon, which means, if you were to ask him, he would probably deflect and avoid answering any questions about his Meta-Philosophy and Theology. That's okay, because one can just look Mormonism up online and verify that Mormon Meta-Physics kind of resemble US FED RESEVE Meta-Physics.

All of this means that Romney - as MSM has told all US'ians - is the only electable meta-physicist, oh, pardon me, GOP'ian politician, whereas Ron Paul, who believes in reality, is completely un-electable.

How can anyone today believe in reality? And in letting reality be known and settling the score? Such thinking is dangerous to the status quo, which must be preserved, in order to save the US as it has become today. 

Like you, Brave MDB, ALL BORN "AMERICANS" can take pride and lay personal claim, to the glory and credit for which the US today stands....

Ooopps - did I say credit? Now wait a minute... did I mean debt.... - no stop, I'm confused... what is it now -how should we look at it.... which accounting angle should we take - help, Larry Summers, anyone... Help !!!

Oh, btw, did you notice that your acronym, MDB, scrambled to MBD, could mean Mortgage Backed Derivatives - my God, you knew that, didn't you? I mean, talk about being pre-conceived in Heaven - OMG.

Derivatives To The Rescue, Gentlemen.  US rules, Gentlemen. Everyone else are amateurs, Gentlemen.

Willzyx's picture

MDB has a point this time.  The Fed is indeed holding Europe together by a thread via swap lines

Kalevi's picture

Are you Jon Stewart?

The deadpan delivery of muck is cool!!!

Pegasus Muse's picture

Definitely.  That is what's needed.  More incisive analysis and candid advice from the brilliant minds -- veritable National Treasures, really -- residing in economic departments in our world-renown Ivy League schools.  

Au_Ag_CuPbCu's picture

Well done!  You seem to have been off your game a little of late...but this is very good!  :)

ElvisDog's picture

MDB is The Onion of Zero Hedge. I just wish we really could live in the world he writes about where skittle crapping unicorns really do exist.

j0nx's picture

You sir MDB are the master of satire. Bravo for keeping things light around here.

PartysOver's picture

Ivy League economic advisors.  Aren't those the same stinking idiots that gave us CDO's, CDS's, MBO's.............................................................



Archduke's picture

ahem...   Mario Draghi holds a Phd in economics from MIT.

The other Mario, Monti, isn't found wanting in credentials.

the Ivy League isn't the only place to get a good education.

and plenty of Hegy traders from Wharton have lost their shirts.

Killtruck's picture

Didn't Jim Rogers tell everyone to buy Euros yesterday?

snowlywhite's picture

I did; he also said to buy usd ~july last year. I bought usd back then too... ;)


just do proper risk management - the algos will give you money even when you're wrong...

Squishi's picture

it's your own fault if you inhale...

lolmao500's picture

Good. Time for Europe to implode so bondzilla can finally focus on the US, UK and Japan.

Quintus's picture

The sooner the better.  Let's get the inevitable pain over with quickly.

ElvisDog's picture

I'm spending three weeks in Northern Greece in July. On the one hand, I would like the Euro to be at par with the dollar. On the other hand, what would that imply about the anger of the Greeks at that time?

eureka's picture

iolmao500 - correct Sir, a foucus, which the USUKs have brilliantly postponed - a.k.a. "kicked down the road" by so much brave money-printing that they surely are to be found in Guiness World Records.

However - US will never cave to the bond-vigilantes - because US has Larry Kudlow and Jim Cramer and Ben Bernanke and Larry Summers - and with all that Larry and Barry at the helm the Ben-evolence that streams from the Anglo-Saxon-Jewish-Mormon-whatever Meta-Brilliance will surely guide the US to continuous earthly glory on behalf of God Himself.

I once was lost, but now I'm found
Was blind, but now I see
'Twas US FED that taught my heart to fear
And US FED my fears relieved
How precious did that grace appear
The hour I first believed
My chains are gone
I've been set free
My God, my US FED has ransomed me
And like a flood its mercy rains
Unending love, Amazing grace


MDB is right - US IS SUPREME - whether led by Brother-Barry or Brother-Batman-Mitt.

As long as you keep realists like Ron Paul out of the picture, US will be fine and rule forever & ever. Amen.

Wixard's picture

And you know right NOW there is some euro equivelant of jim cramer talking about how its still worth something and that buying it 2 months ago was a great idea.

Irish66's picture

Who were the underwriters for UniCredit?

GeneMarchbanks's picture

I'm sure MS is in there somewhere...

Non Passaran's picture


The offer price reflects “current market conditions,” UniCredit said, adding that the Italian market regulator has approved the offer forms. A group of underwriting banks, led by Bank of America Corp. and Mediobanca SpA, have guaranteed the rights offer, the lender said.