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EURUSD Dips Below 1.28 As All Hell Breaks Loose In Italian Financials
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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ouch
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.
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.
That is AWESOME! One of your best yet, MDB. I bet you can't keep a straight face when you're typing that shit.
For reals, what a tool!
So maybe Latvians will get to leave the country for vacation and buy German cars?
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.
ori
a-slice-of-life-in-pictures/
his one and done approach is bot like...cast your line and see what fish you catch...although it is hysterically funny ...my paranoia leads me to believe it is more to it than comedy...
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.
Yes. The advise of the some of the Ivy League brains would surely raise the 3rd world countries, up to 4th world countries!
ROR
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.
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).
Conclusion: You're a fool.
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.
MDB is the Tyler Comedy Team. A great break from the goofiness of what we have to deal with 8 to 5.
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.
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.
Governments always debase Gold and Silver too.Been there done that.
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.
Maybe they can ask the IMF for an intro.
Not one of your best parodies, I'm afraid.
The same ones who can't complete advising paperwork for their students
Where is it written in life that everything is fair?
Yes sir this thinking definately needs to be exported, or expatriated ...
spam.
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.
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.
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.
Not much longer. Central banking always makes the problem worse. Bigger booms and bust. Now its time for the bust.
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.
MDB has a point this time. The Fed is indeed holding Europe together by a thread via swap lines
Are you Jon Stewart?
The deadpan delivery of muck is cool!!!
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.
http://www.youtube.com/watch?v=8lHvTKzfu8Q
Well done! You seem to have been off your game a little of late...but this is very good! :)
Cool handle!
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.
You sir MDB are the master of satire. Bravo for keeping things light around here.
Ivy League economic advisors. Aren't those the same stinking idiots that gave us CDO's, CDS's, MBO's.............................................................
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.
Didn't Jim Rogers tell everyone to buy Euros yesterday?
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...
it's your own fault if you inhale...
He didn't say when :-)
Good. Time for Europe to implode so bondzilla can finally focus on the US, UK and Japan.
The sooner the better. Let's get the inevitable pain over with quickly.
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?
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
WATCH BARRY SAY SOMETHING LIKE THAT IN HIS UPCOMING STATE OF THE UNION SPEACH.
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.
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.
Who were the underwriters for UniCredit?
I'm sure MS is in there somewhere...
Bloomy:
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.
thank you..I heard someone trying to say something about BAC and this and they were shut upped
BDIY -8.1% suggests 2012 is off to a poor start. Italian banks are still around? Who knew...
The only person surprised by this should be Larry Fink.
But...but...ADP....RECOVERY....decoupling....cash on the sidelines...global growth....January Effect....Santa Rally....
I'm absolutely positive that the decoupling will turn to recoupling very very soon. The RobotTards of the world will be crying like little disillusioned bitches.
lmfao
I can almost hear you being out of breath!
And they rush to the....dollar?. What a nightmare.
I guess they forgot a ton of feathers weighs as much as a ton of bricks.
Are these Italian bricks???
As long as we have the twin oceans and the military industrial complex protecting us, they'll be alright:)
I'm looking at 10 yr Italian BTPs at 7.09%.
Behold austerity and the effectiveness of technocrats.
Why oh why was Monti summoned ro Brussels?
What is going on?
Italy PM Monti flies to Brussels unexpectedly
ROME, Jan 5 (Reuters) - Italian Prime Minister Mario Monti has flown unexpectedly to Brussels, a source in his office said on Wednesday.
There were no details on his agenda or of any meetings planned during the visit, which comes a day before a trip to Paris where Monti will meet French President Nicolas Sarkozy. (Reporting By Paolo Biondi)
Good news for us doomers.
Seeking asylum? Waffle craving?
Uncontrollable urge to wave his stubby arms?
(inside ZH joke--Sudden Debt seems to be Belgian)
In Soviet Belgium, arms wave you!
In Soviet Belgium, arms waffle you!
Armed with waffles, Mario Monti stubs the shorts with an unexpected wave of sudden debt.
F'kn awesome. +1
Technocrats have zero contituency inside the country.
You can't austerity your way past 7% 10 year paper.
He has to have a lending source that doesn't cost him 7%. Period.
Anyone here want to lend?
Just have to ask the ECB, they've got plenty of money.
Not going to happen. For the same reasons the Fed can't bail out California.
Individual state budgets are the responsibility of individual state governments. If they blow out, responsibility begins and ends with the state government. Ditto EU member countries.
Cut or die.
Cut and die.
The choice is which kills the fewest people. Tough choice to make.
The real reason the FED would never bail out a state is theres no money in doing it.
If they deposited gold with me at the market price, I'd lend them all my money!
Collateral, bitchez!
P.S. Speaking of which, has anyone checked if the airplane Monti took was a cargo flight?
When are you gonna ask me out on a date?
Bullish for QE
Gold not sensing the bullishness.
Patience Grasshopper...
Why oh why was Monti summoned to Brussels?
Probably to be presented with another intriguing offer from the Troika to trade all that Italian gold for another IMF loan....
Tyler wrote:
"...as somehow America is supposed to be able to import and export from and to itself "
Exactly. Most in this space are trying to game SP500 or gold when the real meat of this problem is global trade with uncertain values of currencies from trading partners, and the shortfall risk in industrial production that ensues.
Global trade is irrelevant on a bankrupt globe. Now, where the hell are those Martians with their gold and demand for some earth crap?
OT: More dirt on the Irish banking practises
http://namawinelake.wordpress.com/2012/01/05/nama-reveals-new-practice-in-irish-banks-give-a-borrower-a-loan-give-the-borrower-a-second-loan-to-pay-interest-on-the-first-loan-and-classify-the-first-loan-as-performing/
I was waiting for you!
Lol! And i was secretly hoping you would be "offended" again. ;-)
A bank, engaged in fraud??? *GASP* What is the world coming to?
Next, you'll tell me the politicians are in cahoots with these?
This year's fraud is next year's financial innovation.
That fat lady, she sure is inhaling.
Who cares if some BS italian bank goes under, who cares even if all of italy goes under, the dow and the s&p will still go higher...keep those negative comments coming ZH
I think you need to study up on credit default swaps and how many of them US banks hold on Euro sovereigns, euro bank paper, and euro this or that.
This shit will take down US banks.
Only if that "shit" is honored. How did that work out for the holders of Greek Debt again? Possession has always been 9/10 ths of the law, soon it will be all that matters.
Bingo. I think we learned from the first Greek 50% debt haircut that CDS's are worthless so can we stop talking about them as the thing that will bring the whole system down.
Am I missing something?
I thought the haircut was still being negotiated with 50% agreed already but the Germans hinting at 75%? (And most of us hoping for 100%).
Hate to say it but I'm right.
See Tylers post today http://www.zerohedge.com/news/european-deathwish-exposed-greek-bailout-package-delayed-three-months
"But details of the second programme, which includes a 50 percent haircut on Greek bonds held by private investors, are still under negotiation."
Like all the Un-marked to market mortgages have so far? I understand the logic, but I'm not holding my breath that the magic anti-gravitational can can no longer be kicked down the road at this point. They will probably say that the 3 trillion in sovereign debt is still worth it's par value until a mass of starving pitchfork wielders crowbars open the filing cabinets it's held in to try to boil it down for a gruel-substitute...
Pennies, steamroller, mn2's eventual fate.
But hey, keep your normalcy bias alive.
a) the rest of europe
b) the USA
c) China
d) anyone else who holds italian debt (public or private)
e) anyone who sells to italians
f) all of the above
hang in there momobulls the berstank will be printing spoo shortly.. can't a guy take a dump around here without everything going to shit?
We had green shoots ...
They have Brussel sprouts ...
Bad joke, sorry
Made me chuckle. Add some Oysters Rockefeller and we've got quite a stew!
It's contained. (I don't know that; that's just what people are supposed to say when stuff like this happens, I think.)
kind of like the containment vessels at Fukushima?
The USD index is close to breaking out above 81. The dollar is gathering strength and when/if it breaks out it’s going to take everything down including Gold (probably).
There's a lot of tension. NYMEX wholesale gasoline still showing the middle finger at almost $2.80/gallon.
The other thing is, Euroland has got Ben to open the (illegal, evil etc) spigots to help the poor spendthrift PIIGSters. So not clear how much this 'weakness leakage' will damage the old n busted flight to safety reflex.
Yeah, but is that dollar strength a short-term trend or a long term trend? I guess that question doesn't matter to traders, but I wouldn't get all fat-and-sassy about the dollar long term.
exports? surely we could export the "plunge protection team"? that must be worth something.
Even the European markets could seem to barely give a shit today.
Holy jeebus, Baltic Dry index falls over 8% (on RAN Squawk now)
Got nowhere to put more...channels all stuffed.
We shall cascade to triple digits once again. 2008 Redux.
Don't you get it by now?
When the BDI increases, it's because of strong demand.
When it drops, it's due to an increase in shipping capacity.
There are no other factors at play.
Another horrific gap down in junior gold stocks.
John Hathaway must be ready to hang himself. Redemptions are coming in fast and furious.
Meanwhile, REITS continue their relentless 3-year climb.
or you could have posted: the high today in los angeles will be 78. it would have been about as relevant to the post as what you posted.
robottrader: struggling to be relevant since 1999.
Robo STILL cant get over his '$900 gold top' where he sold....gold is now his arch nemesis, he's crazier than the Joker over gold!
he also said santander (std) was his top pick and that euro banks would be the top performers for 2011. of course he was all over tzoo as well. only the world's worst stock picker could possibly have a worse track record than 'tard.
Peeps keep beating on the robot but he's right.
The US is the tallest mast on a sinking global ship.
(The rats are on this mast, BTW.)
Bernanke doesn't have to print b/c capital flight from Europe and (gasp) China amounts to the same thing.
Central bankers understand the consequences of 'money-printing'. Reflexive money printing is self-destructive of the banks. Right now the world's economies are propped by central banks, the last line of defense. Money printing is for 'dumb' countries like India, China, Belarus and ... Switzerland (?).
Capital flight ='s a tailwind for stocks as the fleeing funds are 'under management' rather than refugees in steerage with a couple of gold coins in a sock. A shitty shopping complex in Las Vegas looks like a safer bet to an asset manager than does a bank in France ... or a gold miner. Buying the product and selling the producer has been a good trade for ... how long, now? Miners are almost pure inflation plays, the deleveraging world is deflating.
The real game is the end of the euro, which country will join UK out of the EU Ponzi scheme? Greece? Italy? Or Germany? I say one more little country will go then Germany.
Euro= 'poof'!
you make some good - yet debatable - points which have nothing to do with robottrader who happens to have been wrong in almost every prediction he's made. he uses gold, silver and mining stocks (which i'll point out he has a decent amount) as sock puppets to detract attention from his horrendous picks. the 'tard fancies himself a trader. yet by his own admission he is a buy and hold stock monkey. and if he's ever made an original comment my hunch is that it was stolen from somebody else.
"rock farming" vs "yield hungry maniacs." we HAVE a winner!
Didn't you tell everyone here they were idiots for buying gold a couple of years back?
Anyway, how are your Netflix shares?
So what, who gives a shit. I bought some shorts to balance off my longs.
And my phyzz is safe, so bugger off.
Okay, Robo is a bit over the top, but he's right about gold mining stocks. They are dogs, never seem to keep up with the price of the metal. I dumped mine last year and am glad I did. I keep hearing about how they emply leverage and will explode in price when the price of gold goes up, but it never seems to happen that way.
The Fed will now be buying banks stocks...and debt...but if you were an Italian with money in this bank or any Italian bank..what would you be doing today...
Before or after you had your siesta?
Why aren't they doing so?
I don't know, but I suspect these Italian banks spend the time lending lots of money at favourable terms to senior executives.
Regretting my poor decision-making skills and the loss of my zooroos.
Good thing there is a short sale ban still on Italian financials to protect the equity of Italian Banks.
oh, wait..
So brent should be collapsing...oh that's right...the West vs Iran saber rattling is helping inflate prices. Here is an analysis I read "WTI has a 36-month 75% correlation to S&P moves, and a 80% correlation to the euro (Eur/Usd) currency pair" which is funny that suddenly Iran came back in the picture this week.
Pick your poison http://stockcharts.com/h-sc/ui?s=$SPX&p=D&b=5&g=0&id=p71203422166
Yep, oil should be at 60$ a barrel, not 110.
DAMN SPECULATORS!
Damn, and we still have a couple of hours until the first Euro positive rumor of this year can be launched.
i'm gonna do my part to help out italy! will franchise sex shops modeled after the american general stores from long ago. the franchise name will be "GenItalia."
Ooo! Sounds fancy!
Go'n in with Harry Wanger?
St./Sir Thomas More
Utopia 1516
DAMN! Well I sure am glad all is back to normal boom times here in the U.S. and none of this matters! Lets go for at least a 200 handle on the DOW today!
Well I just hope these other governments see what the possibilities are when they run a fair, corruption-free government like the US rather than pandering to whoever has the biggest check for them like the rest of the world. Real Democracy of the United States wins again. We don't even need the rest of the world, we can support our own growth...
YES! Love the "Dow 36,000 mushroom cloud" bit. We will finally ALL be trillionaires!!
I can't wait to finally be able to make it rain in the strip club. I hope they will still accept singles...
Equity/Euro pair trade obviously well broken. What will the next next fill in the blank 'We're all ____ traders' be now?
There's the Titanic and then there's this...if the banks aren't building Bernanke statues for as far as the eye can see then they are truly blind to the horror. By keeping those funding costs at or near zero he's the only thing standing in the way of Financial Armageddon for Wall Street. I'm sure we'll hear the hosannah's and huzza huzza's any minute now!
Wait! The market cannot go down. We still have the "better than expected" ISM number to come out shortly. Get ready to close 1% up on the day.
</sarc>
Phonied up data all for nothin....like a prom date that got stood up.
All hell will continue to "break loose", as eventually even 10% on these worthless pieces of fiat will not be the bottm in terms of yield. Guess what politicos? The world has run out of other people's money.
http://vegasxau.blogspot.com
Now, time for a Straits of Hormuz major incident.
"The accumulated filth of all their sex and murder will foam up about their waists and all the whores and politicians will look up and shout 'Save us!' And I'll look down, and whisper 'No.'"
That sent a chill up my spine and a tear to my eye, best character since Batman...well at least until the took his mask off and he looked like Richie from Happy Days
That quote is from a movie superhero? And here I was thinking Jim Jones had said it. ;-).
Rorschach from Watchmen
S&P bouncing off of critical support levels 1266ish. I am buying.
doh
So how long does the USD get a bounce after the capital flees Europe? Won't this just give the USD at least another 6 months AFTER Greece bites in March? Maybe this was the plan all along, to fleece the worlds liquidity.