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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

ouch

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.

ori

a-slice-of-life-in-pictures/

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 ...my 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!

ROR

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

spam.

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.

http://www.youtube.com/watch?v=8lHvTKzfu8Q  

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

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.

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

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.

Thu, 01/05/2012 - 10:43 | 2035299 Irish66
Irish66's picture

thank you..I heard someone trying to say something about BAC and this and they were shut upped

Thu, 01/05/2012 - 10:22 | 2035182 GeneMarchbanks
GeneMarchbanks's picture

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.

Thu, 01/05/2012 - 10:21 | 2035184 Cdad
Cdad's picture

But...but...ADP....RECOVERY....decoupling....cash on the sidelines...global growth....January Effect....Santa Rally....

Thu, 01/05/2012 - 10:26 | 2035208 WonderDawg
WonderDawg's picture

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.

Thu, 01/05/2012 - 10:59 | 2035360 VisualCSharp
VisualCSharp's picture

lmfao

I can almost hear you being out of breath!

Thu, 01/05/2012 - 10:21 | 2035185 monopoly
monopoly's picture

And they rush to the....dollar?. What a nightmare.

Thu, 01/05/2012 - 10:24 | 2035200 Wixard
Wixard's picture

I guess they forgot a ton of feathers weighs as much as a ton of bricks.

Thu, 01/05/2012 - 10:29 | 2035231 Wu Qi Ming
Wu Qi Ming's picture

Are these Italian bricks???

Thu, 01/05/2012 - 10:30 | 2035239 Peter K
Peter K's picture

As long as we have the twin oceans and the military industrial complex protecting us, they'll be alright:)

Thu, 01/05/2012 - 10:44 | 2035188 CrashisOptimistic
CrashisOptimistic's picture

I'm looking at 10 yr Italian BTPs at 7.09%.

Behold austerity and the effectiveness of technocrats.

Thu, 01/05/2012 - 10:22 | 2035190 lizzy36
lizzy36's picture

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)

Thu, 01/05/2012 - 10:23 | 2035195 lolmao500
lolmao500's picture

Good news for us doomers.

Thu, 01/05/2012 - 10:23 | 2035196 GeneMarchbanks
GeneMarchbanks's picture

Seeking asylum? Waffle craving?

Thu, 01/05/2012 - 10:26 | 2035207 Jim in MN
Jim in MN's picture

Uncontrollable urge to wave his stubby arms?

 

 

 

(inside ZH joke--Sudden Debt seems to be Belgian)

Thu, 01/05/2012 - 10:38 | 2035281 a growing concern
a growing concern's picture

In Soviet Belgium, arms wave you!

Thu, 01/05/2012 - 10:39 | 2035287 EscapeKey
EscapeKey's picture

In Soviet Belgium, arms waffle you!

Thu, 01/05/2012 - 10:46 | 2035312 Conrad Murray
Conrad Murray's picture

Armed with waffles, Mario Monti stubs the shorts with an unexpected wave of sudden debt.

Thu, 01/05/2012 - 11:01 | 2035363 VisualCSharp
VisualCSharp's picture

F'kn awesome. +1

Thu, 01/05/2012 - 10:30 | 2035234 CrashisOptimistic
CrashisOptimistic's picture

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?

Thu, 01/05/2012 - 10:33 | 2035251 lolmao500
lolmao500's picture

Just have to ask the ECB, they've got plenty of money.

Thu, 01/05/2012 - 10:46 | 2035315 CrashisOptimistic
CrashisOptimistic's picture

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.

Thu, 01/05/2012 - 10:48 | 2035323 SheepDog-One
SheepDog-One's picture

The real reason the FED would never bail out a state is theres no money in doing it. 

Thu, 01/05/2012 - 11:24 | 2035438 Non Passaran
Non Passaran's picture

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?

Thu, 01/05/2012 - 10:31 | 2035246 disabledvet
disabledvet's picture

When are you gonna ask me out on a date?

Thu, 01/05/2012 - 10:37 | 2035277 BoNeSxxx
BoNeSxxx's picture

Bullish for QE 

Thu, 01/05/2012 - 10:41 | 2035296 SheepDog-One
SheepDog-One's picture

Gold not sensing the bullishness.

Thu, 01/05/2012 - 11:18 | 2035416 BoNeSxxx
BoNeSxxx's picture

Patience Grasshopper...

Thu, 01/05/2012 - 11:59 | 2035554 ElvisDog
ElvisDog's picture

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....

Thu, 01/05/2012 - 10:22 | 2035192 kindape
kindape's picture

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.

Thu, 01/05/2012 - 10:46 | 2035313 LawsofPhysics
LawsofPhysics's picture

Global trade is irrelevant on a bankrupt globe.  Now, where the hell are those Martians with their gold and demand for some earth crap?

Thu, 01/05/2012 - 10:24 | 2035199 Irish66
Irish66's picture

I was waiting for you!

Thu, 01/05/2012 - 10:30 | 2035240 Dick Darlington
Dick Darlington's picture

Lol! And i was secretly hoping you would be "offended" again. ;-)

Thu, 01/05/2012 - 10:29 | 2035230 EscapeKey
EscapeKey's picture

A bank, engaged in fraud??? *GASP* What is the world coming to?

Next, you'll tell me the politicians are in cahoots with these?

Thu, 01/05/2012 - 10:34 | 2035265 GMadScientist
GMadScientist's picture

This year's fraud is next year's financial innovation.

Thu, 01/05/2012 - 10:24 | 2035201 Jim in MN
Jim in MN's picture

That fat lady, she sure is inhaling.

Thu, 01/05/2012 - 10:24 | 2035202 mn2
mn2's picture

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

Thu, 01/05/2012 - 10:27 | 2035215 CrashisOptimistic
CrashisOptimistic's picture

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.

Thu, 01/05/2012 - 10:48 | 2035318 LawsofPhysics
LawsofPhysics's picture

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.

Thu, 01/05/2012 - 12:02 | 2035570 ElvisDog
ElvisDog's picture

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.

Thu, 01/05/2012 - 20:05 | 2037511 smiler03
smiler03's picture

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%).

Thu, 01/05/2012 - 20:16 | 2037539 smiler03
smiler03's picture

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."

Thu, 01/05/2012 - 10:50 | 2035328 Axenolith
Axenolith's picture

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...

Thu, 01/05/2012 - 10:30 | 2035237 EscapeKey
EscapeKey's picture

Pennies, steamroller, mn2's eventual fate.

But hey, keep your normalcy bias alive.

Thu, 01/05/2012 - 10:36 | 2035273 GMadScientist
GMadScientist's picture

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

 

Thu, 01/05/2012 - 10:26 | 2035206 scatterbrains
scatterbrains's picture

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?

Thu, 01/05/2012 - 10:26 | 2035210 TheAkashicRecord
TheAkashicRecord's picture

We had green shoots ...

They have Brussel sprouts ...

Bad joke, sorry 

Thu, 01/05/2012 - 10:34 | 2035261 disabledvet
disabledvet's picture

Made me chuckle. Add some Oysters Rockefeller and we've got quite a stew!

Thu, 01/05/2012 - 10:27 | 2035213 Hansel
Hansel's picture

It's contained.  (I don't know that; that's just what people are supposed to say when stuff like this happens, I think.)

Thu, 01/05/2012 - 10:28 | 2035226 daily bread
daily bread's picture

kind of like the containment vessels at Fukushima?

Thu, 01/05/2012 - 10:27 | 2035214 EL INDIO
EL INDIO's picture

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).

Thu, 01/05/2012 - 10:34 | 2035262 Jim in MN
Jim in MN's picture

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.

Thu, 01/05/2012 - 12:04 | 2035577 ElvisDog
ElvisDog's picture

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.

Thu, 01/05/2012 - 10:27 | 2035217 daily bread
daily bread's picture

exports?  surely we could export the "plunge protection team"?  that must be worth something.

Thu, 01/05/2012 - 10:27 | 2035218 fonzanoon
fonzanoon's picture

Even the European markets could seem to barely give a shit today.

Thu, 01/05/2012 - 10:28 | 2035222 Jim in MN
Jim in MN's picture

Holy jeebus, Baltic Dry index falls over 8% (on RAN Squawk now)

Thu, 01/05/2012 - 10:31 | 2035245 GMadScientist
GMadScientist's picture

Got nowhere to put more...channels all stuffed.

Thu, 01/05/2012 - 10:37 | 2035275 GeneMarchbanks
GeneMarchbanks's picture

We shall cascade to triple digits once again. 2008 Redux.

Thu, 01/05/2012 - 10:37 | 2035274 EscapeKey
EscapeKey's picture

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.

Thu, 01/05/2012 - 10:29 | 2035233 RobotTrader
RobotTrader's picture

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.

Thu, 01/05/2012 - 10:36 | 2035270 lieutenantjohnchard
lieutenantjohnchard's picture

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.

Thu, 01/05/2012 - 10:38 | 2035279 SheepDog-One
SheepDog-One's picture

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!

Thu, 01/05/2012 - 10:46 | 2035301 lieutenantjohnchard
lieutenantjohnchard's picture

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.

Thu, 01/05/2012 - 11:58 | 2035538 steve from virginia
steve from virginia's picture

 

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'!

Thu, 01/05/2012 - 12:13 | 2035630 lieutenantjohnchard
lieutenantjohnchard's picture

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.

Thu, 01/05/2012 - 10:36 | 2035271 disabledvet
disabledvet's picture

"rock farming" vs "yield hungry maniacs." we HAVE a winner!

Thu, 01/05/2012 - 10:44 | 2035303 EscapeKey
EscapeKey's picture

Didn't you tell everyone here they were idiots for buying gold a couple of years back?

Anyway, how are your Netflix shares?

Thu, 01/05/2012 - 11:36 | 2035473 Non Passaran
Non Passaran's picture

So what, who gives a shit. I bought some shorts to balance off my longs.
And my phyzz is safe, so bugger off.

Thu, 01/05/2012 - 12:11 | 2035616 ElvisDog
ElvisDog's picture

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.

Thu, 01/05/2012 - 10:30 | 2035235 youngman
youngman's picture

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...

Thu, 01/05/2012 - 10:34 | 2035260 Peter K
Peter K's picture

Before or after you had your siesta?

Thu, 01/05/2012 - 10:38 | 2035282 PontifexMaximus
PontifexMaximus's picture

Why aren't they doing so?

Thu, 01/05/2012 - 10:38 | 2035283 EscapeKey
EscapeKey's picture

I don't know, but I suspect these Italian banks spend the time lending lots of money at favourable terms to senior executives.

Thu, 01/05/2012 - 10:39 | 2035286 GMadScientist
GMadScientist's picture

Regretting my poor decision-making skills and the loss of my zooroos.

 

Thu, 01/05/2012 - 11:00 | 2035236 Manthong
Manthong's picture

Good thing there is a short sale ban still on Italian financials to protect the equity of Italian Banks.

oh, wait..

Thu, 01/05/2012 - 10:36 | 2035242 firstdivision
firstdivision's picture

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

Thu, 01/05/2012 - 10:41 | 2035293 lolmao500
lolmao500's picture

Yep, oil should be at 60$ a barrel, not 110.

Thu, 01/05/2012 - 10:32 | 2035248 Sudden Debt
Sudden Debt's picture

DAMN SPECULATORS!

Thu, 01/05/2012 - 10:32 | 2035250 Peter K
Peter K's picture

Damn, and we still have a couple of hours until the first Euro positive rumor of this year can be launched.

Thu, 01/05/2012 - 10:34 | 2035258 sabra1
sabra1's picture

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."

Thu, 01/05/2012 - 10:36 | 2035272 SheepDog-One
SheepDog-One's picture

Ooo! Sounds fancy!

Thu, 01/05/2012 - 23:08 | 2037909 ceilidh_trail
ceilidh_trail's picture

Go'n in with Harry Wanger?

Thu, 01/05/2012 - 10:35 | 2035266 Rudolph Steiner
Rudolph Steiner's picture
I can have no other notion of all the other governments that I see or know than that they are a conspiracy of the rich, who on pretense of managing the public only pursue their private ends, and devise all the ways and arts they can find out: first, that they may without danger preserve all that they have so ill acquired, and then that they may engage the poor to toil and labor for them at as low rates as possible, and oppress them as much as they please.


St./Sir Thomas More
 Utopia 1516

Thu, 01/05/2012 - 10:36 | 2035268 SheepDog-One
SheepDog-One's picture

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!

Thu, 01/05/2012 - 10:54 | 2035342 junkyardjack
junkyardjack's picture

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...

Thu, 01/05/2012 - 10:39 | 2035284 LawsofPhysics
LawsofPhysics's picture

YES!  Love the "Dow 36,000 mushroom cloud" bit.  We will finally ALL be trillionaires!!

Thu, 01/05/2012 - 10:55 | 2035345 junkyardjack
junkyardjack's picture

I can't wait to finally be able to make it rain in the strip club.  I hope they will still accept singles...

Thu, 01/05/2012 - 10:40 | 2035289 SheepDog-One
SheepDog-One's picture

Equity/Euro pair trade obviously well broken. What will the next next fill in the blank 'We're all ____ traders' be now?

Thu, 01/05/2012 - 10:44 | 2035298 disabledvet
disabledvet's picture

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!

Thu, 01/05/2012 - 10:43 | 2035300 firstdivision
firstdivision's picture

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>

Thu, 01/05/2012 - 10:45 | 2035309 SheepDog-One
SheepDog-One's picture

Phonied up data all for nothin....like a prom date that got stood up.

Thu, 01/05/2012 - 10:44 | 2035304 vegas
vegas's picture

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

Thu, 01/05/2012 - 10:46 | 2035314 SheepDog-One
SheepDog-One's picture

Now, time for a Straits of Hormuz major incident.

Thu, 01/05/2012 - 10:44 | 2035305 fall
fall's picture

"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.'"

Thu, 01/05/2012 - 10:57 | 2035354 junkyardjack
junkyardjack's picture

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

Thu, 01/05/2012 - 11:16 | 2035409 Whoa Dammit
Whoa Dammit's picture

That quote is from a movie superhero? And here I was thinking Jim Jones had said it. ;-).

Thu, 01/05/2012 - 12:13 | 2035632 ucsbcanuck
ucsbcanuck's picture

Rorschach from Watchmen 

Thu, 01/05/2012 - 10:56 | 2035351 Stax Edwards
Stax Edwards's picture

S&P bouncing off of critical support levels 1266ish.  I am buying.

Thu, 01/05/2012 - 10:56 | 2035352 Stax Edwards
Stax Edwards's picture

doh

Thu, 01/05/2012 - 11:00 | 2035362 warezdog
warezdog's picture

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.

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