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FT Reports Italian Government On Brink Of Collapse
Certainly not helping European sentiment is the report from the FT that "Silvio Berlusconi’s centre-right coalition government in Italy appears in danger of collapsing over European Union demands for a demonstration of concrete action on economic reform by Wednesday’s summit of eurozone leaders. The EU ultimatum delivered to Mr Berlusconi in Brussels on Sunday risks breaking his coalition instead of giving it an external impetus to move ahead on measures to cut Italy’s debt and promote economic growth." So you mean that extending the retirement age by a few hours is not credible reform? That surely is news to Bunga Bunga. And after all, remember the dedication with which Italy promised it would promptly enforce austerity after it was admitted to the SMP bond monetization program, only to completely forget all promises 48 hours later? It seems Europe, which has had enough of being humiliated by the corrupt pederast, has remembered: "The ultimatum was delivered as part of efforts to resolve the eurozone sovereign debt crisis, but the Italians’ failure to reach agreement on reform threatens EU leaders’ stated goal of finalising at Wednesday’s summit a comprehensive solution to the crisis." So the question is: how long before The Guardian refutes all FT speculation that Italy is scuttled with a well-timed rumor at 3:45pm?
More:
Talks on Tuesday morning between Mr Berlusconi and his Northern League coalition partners failed to resolve the deadlock – centred on proposed pension reforms – after negotiations into Monday night made little progress.
“The government is at risk,” Umberto Bossi, leader of the fiercely eurosceptic and federalist Northern League, told reporters in Rome. “The situation is difficult, very dangerous. This is a dramatic moment,” he was quoted as saying.
Commentators said the crisis was the most serious facing Mr Berlusconi since his election victory in 2008, recalling memories of 1994 when the Northern League brought down his first government after just a few months.
The prime minister’s People of Liberty party has proposed that the pension age be raised to 67 years from 65 in line with increasing life expectancy, and that the system of length-of-service pensions also be modified. The Northern League is opposed and La Padania, its party newspaper, on Tuesday attacked what it called “euro-tyranny”.
Altero Matteoli, a PDL minister, said a collapse of the government was a “hypothesis”. He also noted that talks were continuing and that a compromise with the Northern League was still possible.
In other news, it appears that the spin which is so far keeping the Euro from collapsing on tomorrow's now disclosed EcoFin meeting cancellation is that even though Europe's finance ministers can not agree, 24 hours ahead of the deadline, on the formulation of the most complex SPV ever conceived, somehow the Eurozone leaders will succeed...
Just wow.
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Sub-76 ¥
Yentervention?! Is that what you wish for the holidays?
I see the ¥ going 1:1 with the Rupee!
Berlusconi , who has always had his own version of reality, is not going to accept the fact that he has personally destroyed the Italian economy with his grandiosity
blablabla "singlehandedly" & "destroyed"
Bossi and Berlusconi are now repeating the same procrastination show as Merkel and Sarkozy
even if the gov would fall - nothing new for Italians, used to have 7 govs a year in the past: President Napolitano (who is a fierce post-communist pro-european constitutionalist) would appoint Berlusconi for ad-interim with a technical cabinet stuffed with pro-europeans, i.e. without the Lega Nord...
So you mean that nothing is new in the world...
- as in "xtending the retirement age by a few hours is not credible reform..."
- and then we can conclude that mankind does NOT evolve, and that technology and robotization does not make for better lives for human beings, but rather only for the small elite who owns the machones, the banks, the politicans and the "security"-military and spy agencies apparatus?
IF - these facts are the case - then what do we do?
Care only about ourselves, become all bohemian hedonists - or - revolve...?
France and Germany have both soon elections
it's simply not time for reforms
politicians are usually not afraid of making mistakes - see exibit A: war
politicians are usually very afraid of being blamed for a mistake before elections
British media are scared of Burli mans media empire.....UK calling out Italy on debt....look who is talking
Collapse: a word to be repeated with increasing frequency as the Great Unwind continues.
Call the f----- Pope for the world bank plan. Any money left at the Vatican after paying out the children?
Vatican Inc.
http://www.youtube.com/watch?v=G77_rIbRWec
And the EUR is up on this?
Bizzaro world.
Yup. The selloff just ended. That was it. Back to vapor volume melt-up.
Instead of just saying its bizarre that the EUR is going up on such news, we don't we try to understand why?
I'm becoming convinced that all these political issues in Europe are actually what is keeping the currency up relatively high in a crisis. If there was more US-style relative political functionality they might have the agreement to throw the money printers at the problem by now and then you'd have your EUR collapsing against everythning.
It may be possible in light of this that European political deadlock means that the Euro will outperform everything but unmanipulated risk-off currencies as the currency union falls apart.
I know this seems counter-intuitive, but does anyone see where I'm coming from?
I think someone is printing dollars, buying Euros, and giving them to European banks to keep the lights on. All on the up and up.
'I think someone is printing dollars'
Yes who could that be now?
Not a bad theory. Would fit with the idea that the TPTB who can control the monetary system (those in the US unlike those in the EZ) are actively working to help the market, help banks and help debase their own currency -- all of which seem to have been their key financial policy priorities over the last couple of years.
Ultimately this won't help the big German export companies controlling the governing coalition though. German and US financial war, bitchez!
currency and trade wars have been discussed at length on ZH and yes they are getting hotter by the day. Duh. Got physical?
You all seem to assume that there's a binary world of owning either USD or physical PMs. The point I am trying to make is that there are factors at play which might help other assets (like the EUR) as much as or more in terms of USD than PMs.
If there's an uneven currency war going on in which the US can debase and the EZ can't, I'd prefer to hold my CHF and EUR, not buy PMs with them -- please don't always assume that everyone is stuck only in USD.
I believe you are right
"market manipulation", IMHO, is to keep the Dollar stronger for a while - nearly all here assume the other way round
I get the distinct impression that several MegaBanks are "banking" on EURUSD at 1.30 by the end of the year and have lots of bets on it
a lot of partecipants to the comments seem to forget that for some 300 million Europeans the EUR is the unit of accounting
I prefer CHF/PMs/EUR
Yep, someone in the EU picked up the Red Bennie Phone they keep in the bottom desk drawer and asked for help....
Yes I thought something similar to you, however in the last week or so TD has proposed that EUR strength is a function of insolvent Euro banks selling USD assets and repatriation of assets to EUR. However in theory if the Euro clowns can't organize a money printing operation then it would outperform the USD. Whether that is what is actually happening or driving the markets right now I haven't got a clue!
Yes, presumably to raise the capital that Merkozy want them to raise. But if the repatriation of US assets by European banks was affecting EURUSD, then surely it would also have affected the US assets they were selling. Raising capital implies selling risk assets under Basel rules, doesn't it? Given what's been happening on the USD risk markets recently, I can't see what would be the corollary effect of EURUSD going up because European banks are repatriating risking USD assets into EUR cash.
You make a good point.
The US would print willy nilly to keep the party going, and as long as there isnt hyperinflation and American Idol is on the masses will continue to circulate the USD as the medium of exchange and implicitly accept it as a store of value, all while bitching about rising prices.
The EUR may strengthen now simply because its undergoing deflation, but the problem is that the EZ has reached the debt event horizon where there isnt enough real growth to service the interest on the existing debt pile.
The ECB must monetize or some external party must play the white knight, else there would not be much of an EZ bank system left when the unwind occurs.
The sovereigns can no longer backstop the banks.
Perhaps they will find a way to call mulligan and it'll all be roses and unicorns but i doubt it.
you are implying that we live on a planet where sovereigns cannot default
this goes against all lessons from history: that eventually all sovereigns default, either straight or by monetization/inflation
the EZ ist trying hard to find a way to get Greece to default straight - and the banking system is trying to stop them
The FT does anyone still believe rumors from the FT ?
"...how long before The Guardian refutes all FT speculation that Italy is scuttled with a well-timed rumor at 3:45pm?"
Well, since it's now 10:30am, I would say about 5 hours and 15 minutes? Just a guess.
LOL - this week is shaping up to be even better than the crap-show that was this last weekend's summit. Good stuff.
Berlusconi should make merkel into one of his sex slave
I think it'll be the other way around. Italy absolutely needs Germany.
Merkel has already made Berlusconi into one of her scapegoats.
The new phrase is ScapePIGS.
No Merkel and the German public have been the sex slave of Europe for far too long already (by paying and insuring the future of this whole Europe experiment). Angie should use a strap-on and give it to greece and Berlusconi....without lubrication!
LET IT BURN BITCHEZ
BUNGA BUNGA!!!!!!!!
End of quarter...must stay positive
Oh....that's why the machines are ramping the EUR/USD; it all makes perfect fucking sense! Go HFT's, because if you keep it up you will ruin even Benny's plans.
Who's to say the Central Banks don't have control over a significant number of HFT algos? That there isn't a coordinated effort to control world markets through massive HFT manipulation?
Isn't that why there has never been a government investigation of any HFT trading since it was first implemented? Because financial regulators don't have the "tools" to investigate HFT's? No regulator can hire a few math PhDs?
dear Uncle Sam
don't get the propaganda to your head - ok, ok, "End the Fed", I'm fine with it but
the Central Banks are helpless without other goons doing the dirty work first
no Central Bank can, for example, just inflate like mad without the affiliated Treasury first printing bonds like there is no tomorrow.
and no Treasury can print big bonds volumes without having a gov deficit first
and no deficit money is wasted unless you buy a lot of crap like weapons and other idiotic things with it - hell, even just giving it to the citizens for free would not have a complete negative effect
and no Central Bank "controls the HFT algos", they are in the hands of the MegaBanks
Where is Central Bank idiocy? really low interest rates (ECB) and incredibly low interest rates (FED)
Up 2400% on my nflx 100 put, risked 2400$ on 10 contracts; profit of 24k.
Your a star:)
Don't just be up on the paper trade: lock it in.
Put in a order for 6 100oz silver bars just now.
Awesome. What's your home address again?
Well done.
I don't like paper, but it's nice to see some people accumulate real capital by doing what you are doing.
100 ounce bars are too big; get 10 ounce or less sized pieces (100 ounce bars are less liquid at small time local dealers; and are also worth counterfeiting).
Very Nice Work!
Strange this blackswan of an FT roumour doesn't cause markets to tank....
If I said it once, I will say it a thousand times, Silvios problem is that his squeezes were young, good looking and paid for. Unlike our home grown bunga bunga bubba:)
I just hope that those finance ministers have a degree in finance and know how to use a calculator.
ALl this time we thought it would be Greece.
Berlusconi’s run AC Milan into the ground, why not Italy?
AGain, can this thing just collaspe already? Can only go up once rock bottom is reached.
In order
-announce a meeting extension in EUR
-bring on the QE3 talk
-EUR/USD ramp
-ES ramp
etc etc....you can fill in the rest
no need green before noon
What a circus the western economies have become!!!
The circus was born in Italy, after all. Both the real one, and the political one.
Let's play the Merkel & Sarcozy video clip again from monday :)
Hey SD, thought you might appreciate this:
Ilmenau, Germany - A German economist who used a probability model to demonstrate that Greece faked its financial data said Tuesday the same test suggested Belgium had cooked its books too.
Gernot Braehler of the University of Ilmenau and three other academics said they had compared economic data from 16 nations.
The group applied Benford's law, also called the first-digit law - a mathematical principle which shows that numbers beginning with 1 are the most common in lists of large numbers, making up 30 per cent of real-life data. Numbers beginning with 9 are the least common.
'In fraudulent numbers, the distribution does not match Benford's Law,' they said.
The off-beam score by Greece in the test indicated some of its numbers were false, the four said in an announcement. Belgium's variance from the expected distribution was almost as extreme, they said, and ought to be investigated.
'Greece probably got into the eurozone in 2001 through this deceit,' they said, adding that faked data may also have helped Greece avoid financial penalties later.
'The European statistics authority Eurostat has already proved that Greece manipulated its economic data, so we think our findings confirm that the Benford test would be effective (in other cases),' they said.
The group analysed 156 published data series, including investment and government spending, from 16 of the 17 European nations which share the euro, between 1999 and 2009.
"I'm shocked, shocked to find gambling going on in this establishment"
"and a girl! A girl! Gambling with me!"
it's already a few months old. :)
all of our national investments are still in the books at 2007 prices +10%
and our GDP is to be revisioned -7% because of the diamond business in Antwerp that doesn't pay any taxes but contributes to the GPD rather a lot.
Miners spiking nicely since yesterday also!
All this time we thought it would be Greece.
Berlusconi’s run AC Milan into the ground, why not Italy?
Again, can this thing just collaspe already? Can only go up once rock bottom is reached.
Rally on news that IBM is going to buyback $7B of own stock (as oppossed to investing it)?
Or that French banks ONLY need EUR 10B to recap banks (LOL. i think they forgot a zero)?
Or that Greece is going to tell the Troika to fuck off when it comes to oversight and kill the whole deal (why would they want oversight when they keep getting bailouts for NEVER meeting a single target)?
Or that to date the threat of LEH2.0 EU style has yet to come to fruition and crying wolf some many times has made "specualtors" doubt the threat?
#bungabunga
This is bullish. Right?
Italy is going to get thrown under the bus by Germany again
Good!
It's funny the way people use words like "pedarast" when talking about Berlusconi, almost as though it's a bad thing. Grow some balls guys. If you are nailing teenagers, and lots of them, when you're 70 years old, then I will salute you. And I salute Berlusconi for his ability to do so. A cursory reflection on evolutionary biology should be enough to inform you that men are hardwired to nail teenagers, as many as possible, as long as they live. So what Berlusconi does is a GOOD thing. Something we should all be aspiring to. I know I am.
What is the point of wealth and power if you don't? You can't take it with you. But you can leave it to your many descendants. 12.5% of Chinese men are direct descendants of Genghis Khan, I read. That was the point of his empire.
Out of curiosity, the boys you have sex with get pregnant?
CNBC highlighting MF Global (ticker MF). Is this the first US company to implode due to european derivative exposure? Is this thing starting to kick off??
Jon Corizone is doing an awesome job there. Totally worth the $5m per year he is making. Althought those options probably a tad out of the money right now.
"being humiliated by the corrupt pederast" gotta be writen by russian.
"Grow some balls guys. If you are nailing teenagers, and lots of them, when you're 70 years old, then I will salute you."
Also, look at all of the "jobs" and "income" he is creating for these young women! One of them even posed nude for playboy!
That's the type of "job creator" I can support!
These idiots telling us that "X" is on the brink of collapses need to be beaten with a stick. By "brink" they mean some time in the next 3 months to 20 years. Their definition of "brink" and mine are completely different. I lost count of how many "brink" articles I've read over the last 6 moths, and NONE of them have collapsed thus far.
Bank run rumour watch in effect. Stay tuned for the warnings.
Algos don't know how to react to all the bad news today. Seems like the news today has triggered the default: case. Bounce between -0% and -1% all day and then rally to +3% at 3:59.
12.5% of Chinese men are direct descendants of Genghis Khan, I read.
Sounds like if Genghis Khan was alive today, he'd be in the NBA.
he had two to three thousand mistresses and 6500 sons... Didn't waste his time! And his progeny tried to emulate him.
(channeling Private Hudson):
Movement.
I've got signals. I've got readings. In front and behind.
Beep.......
Beep......
Beep......
Beep.....
Beep....
Beep...
Beep..
Beep..
Beeeeeeeeeeeep
Default.
I say we take off and nuke the whole continent from Orbit. It's the only way to be sure.
"You know, Burke, I don't know which species is worse. You don't see them fucking each other over for a goddamn percentage."
BBC is carrying the same news http://www.bbc.co.uk/news/world-europe-15443543
4th Recih or Bust¡¡, maybe just bust...
Berlusconi to close to Putin (and Gadaffi). FT ran the article a few weeks ago about Berlusconi running to putin Bday party. Remeber the italian Foreign Min calling for immediate end to Libya bombing? South Stream participation can't be appreciated. The Central bank pick a few days ago....
"Silvio Berlusconi's surprise nomination of Ignazio Visco as head of the Bank of Italy was welcomed in Italy on Friday, but it will draw the opposite reaction from French President Nicolas Sarkozy. Visco's nomination on Thursday means Italy will have two members of the European Central Bank's executive board when Mario Draghi leaves the BOI to replace Frenchman Jean-Claude Trichet as ECB president next month, while France will have none."
http://www.ft.com/intl/cms/s/0/8d9c19f0-f0c6-11e0-aec8-00144feab49a.html
http://www.telegraph.co.uk/news/worldnews/africaandindianocean/libya/8591391/Libya-Italy-calls-for-immediate-halt-to-hostilities.html
http://south-stream.info/index.php?id=38&L=1&tx_ttnews[tt_news]=233&cHash=e5e7cd4b62
http://www.reuters.com/article/2011/10/21/italy-cenbank-idUSL5E7LL2T120111021
Great.
Financial Times
Italy is playing the same game as Greece: find new suckers to lend you money and then take no measures that would lead to being able to ever pay it back. "If you owe the bank $100, that's your problem. If you owe the bank $100 billion, that's the bank's problem." Each of the PIIGS know their situation is hopeless and are simply adding billions to their external debt to reinforce their TBTF status and extend their game politically to avoid citizen revolts, expecting either debt forgiveness or bailouts eventually.
AND GUESS WHAT?
MORGAN STANLEY AND JP MORGAN IN THE US WITH GREAT EXPOSURE....
What happens to you rightwing pedophiles after you've been dethroned?
FT Reports Italian Government On Brink Of Collapse
Why is this newsworthy? Having had about 40 govts since the end of WW2, if an Italian govermnet was NOT on the brink of collapse - then THAT would be worth reporting.