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:

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Thu, 01/05/2012 - 10:18 | 2035172 Squishi
Squishi's picture


Thu, 01/05/2012 - 10:23 | 2035193 slaughterer
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. 

Thu, 01/05/2012 - 10:28 | 2035228 MillionDollarBonus_
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.

Thu, 01/05/2012 - 10:31 | 2035241 WonderDawg
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.

Thu, 01/05/2012 - 10:33 | 2035256 EverythingEviL
EverythingEviL's picture

For reals, what a tool!

Thu, 01/05/2012 - 10:52 | 2035336 hedgeless_horseman
hedgeless_horseman's picture



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

Thu, 01/05/2012 - 11:10 | 2035391 Oh regional Indian
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.



Thu, 01/05/2012 - 11:51 | 2035524 smlbizman
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...

Thu, 01/05/2012 - 10:34 | 2035263 fnord88
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.

Thu, 01/05/2012 - 19:43 | 2037468 UP Forester
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!


Thu, 01/05/2012 - 10:44 | 2035302 LawsofPhysics
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.

Thu, 01/05/2012 - 11:04 | 2035371 Long-John-Silver
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).

Thu, 01/05/2012 - 11:17 | 2035413 Vagabond
Vagabond's picture

Conclusion: You're a fool.

Thu, 01/05/2012 - 12:22 | 2035674 Lost Wages
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.

Thu, 01/05/2012 - 14:19 | 2036161 ceilidh_trail
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.

Thu, 01/05/2012 - 12:52 | 2035830 Hugh_Jorgan
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.

Thu, 01/05/2012 - 11:07 | 2035380 economics1996
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.

Thu, 01/05/2012 - 11:50 | 2035515 Lord Blankcheck
Lord Blankcheck's picture

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





Thu, 01/05/2012 - 12:56 | 2035855 Hugh_Jorgan
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.

Thu, 01/05/2012 - 10:33 | 2035255 GMadScientist
GMadScientist's picture

Maybe they can ask the IMF for an intro.

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

Thu, 01/05/2012 - 10:34 | 2035257 pepperspray
pepperspray's picture

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

Thu, 01/05/2012 - 10:35 | 2035267 blueridgeviews
blueridgeviews's picture

Where is it written in life that everything is fair?

Thu, 01/05/2012 - 10:37 | 2035278 whoisjohngalt11
whoisjohngalt11's picture

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

Thu, 01/05/2012 - 10:39 | 2035288 marcusfenix
marcusfenix's picture


Thu, 01/05/2012 - 10:43 | 2035297 eureka
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.

Thu, 01/05/2012 - 11:07 | 2035370 MillionDollarBonus_
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.

Thu, 01/05/2012 - 11:09 | 2035383 Long-John-Silver
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.

Thu, 01/05/2012 - 11:09 | 2035385 economics1996
economics1996's picture

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

Thu, 01/05/2012 - 11:52 | 2035509 eureka
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.

Thu, 01/05/2012 - 12:05 | 2035582 Willzyx
Willzyx's picture

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

Thu, 01/05/2012 - 10:46 | 2035311 Kalevi
Kalevi's picture

Are you Jon Stewart?

The deadpan delivery of muck is cool!!!

Thu, 01/05/2012 - 10:56 | 2035350 Pegasus Muse
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.  

Thu, 01/05/2012 - 11:51 | 2035521 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

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

Thu, 01/05/2012 - 11:58 | 2035548 j0nx
j0nx's picture

Cool handle!

Thu, 01/05/2012 - 11:53 | 2035533 ElvisDog
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.

Thu, 01/05/2012 - 11:55 | 2035537 j0nx
j0nx's picture

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

Thu, 01/05/2012 - 12:30 | 2035710 PartysOver
PartysOver's picture

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



Thu, 01/05/2012 - 12:39 | 2035758 Archduke
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.

Thu, 01/05/2012 - 10:23 | 2035197 Killtruck
Killtruck's picture

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

Thu, 01/05/2012 - 10:27 | 2035216 snowlywhite
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...

Thu, 01/05/2012 - 10:27 | 2035220 Squishi
Squishi's picture

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

Thu, 01/05/2012 - 10:33 | 2035252 Non Passaran
Non Passaran's picture

He didn't say when :-)

Thu, 01/05/2012 - 10:19 | 2035175 lolmao500
lolmao500's picture

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

Thu, 01/05/2012 - 10:21 | 2035187 Quintus
Quintus's picture

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

Thu, 01/05/2012 - 11:56 | 2035539 ElvisDog
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?

Thu, 01/05/2012 - 12:11 | 2035599 eureka
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.

Thu, 01/05/2012 - 10:20 | 2035178 Wixard
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.

Thu, 01/05/2012 - 10:20 | 2035181 Irish66
Irish66's picture

Who were the underwriters for UniCredit?

Thu, 01/05/2012 - 10:21 | 2035186 GeneMarchbanks
GeneMarchbanks's picture

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

Thu, 01/05/2012 - 10:36 | 2035269 Non Passaran
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.

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