FT Reports Italian Government On Brink Of Collapse

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Tue, 10/25/2011 - 10:32 | 1808096 FranSix
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Sub-76 ¥

Tue, 10/25/2011 - 10:35 | 1808112 GeneMarchbanks
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Yentervention?! Is that what you wish for the holidays?

Tue, 10/25/2011 - 10:41 | 1808148 FranSix
FranSix's picture

I see the ¥ going 1:1 with the Rupee!

Tue, 10/25/2011 - 11:05 | 1808286 ratso
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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 

Tue, 10/25/2011 - 11:29 | 1808408 Ghordius
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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...

Tue, 10/25/2011 - 12:05 | 1808566 eureka
eureka's picture

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...?

Tue, 10/25/2011 - 13:36 | 1809057 Ghordius
Ghordius's picture

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

Tue, 10/25/2011 - 15:50 | 1809657 Djirk
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British media are scared of Burli mans media empire.....UK calling out Italy on debt....look who is talking

Tue, 10/25/2011 - 10:33 | 1808104 GeneMarchbanks
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Collapse: a word to be repeated with increasing frequency as the Great Unwind continues.

Tue, 10/25/2011 - 11:28 | 1808399 Yamaha
Yamaha's picture

Call the f----- Pope for the world bank plan. Any money left at the Vatican after paying out the children?

Tue, 10/25/2011 - 14:24 | 1809286 hivekiller
Tue, 10/25/2011 - 10:34 | 1808106 qussl3
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And the EUR is up on this?

Bizzaro world.

Tue, 10/25/2011 - 10:40 | 1808142 HelluvaEngineer
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Yup.  The selloff just ended.  That was it.  Back to vapor volume melt-up.

Tue, 10/25/2011 - 10:42 | 1808156 letitgo
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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?


Tue, 10/25/2011 - 10:47 | 1808183 HelluvaEngineer
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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.

Tue, 10/25/2011 - 10:51 | 1808204 GeneMarchbanks
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'I think someone is printing dollars'

Yes who could that be now?

Tue, 10/25/2011 - 11:01 | 1808262 letitgo
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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!


Tue, 10/25/2011 - 11:17 | 1808352 LawsofPhysics
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currency and trade wars have been discussed at length on ZH and yes they are getting hotter by the day.  Duh.  Got physical?

Tue, 10/25/2011 - 11:28 | 1808404 letitgo
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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.

Tue, 10/25/2011 - 11:57 | 1808526 Ghordius
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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

Tue, 10/25/2011 - 11:16 | 1808344 Spanish Lizard
Spanish Lizard's picture

Yep, someone in the EU picked up the Red Bennie Phone they keep in the bottom desk drawer and asked for help....

Tue, 10/25/2011 - 10:51 | 1808201 Global Hunter
Global Hunter's picture

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!

Tue, 10/25/2011 - 11:16 | 1808348 letitgo
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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.

Tue, 10/25/2011 - 11:35 | 1808436 qussl3
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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.

Tue, 10/25/2011 - 15:56 | 1809687 Ghordius
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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

Tue, 10/25/2011 - 11:49 | 1808500 riley martini
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The FT does anyone still believe rumors from the FT ?

Tue, 10/25/2011 - 10:34 | 1808110 Quintus
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"...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.

Tue, 10/25/2011 - 10:34 | 1808111 sultan_selim
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LOL - this week is shaping up to be even better than the crap-show that was this last weekend's summit. Good stuff.

Tue, 10/25/2011 - 10:35 | 1808118 Elias Soprano
Elias Soprano's picture

Berlusconi should make merkel into one of his sex slave

Tue, 10/25/2011 - 10:39 | 1808140 Falcon15
Falcon15's picture

I think it'll be the other way around. Italy absolutely needs Germany.

Tue, 10/25/2011 - 10:40 | 1808141 hedgeless_horseman
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Merkel has already made Berlusconi into one of her scapegoats.

Tue, 10/25/2011 - 11:10 | 1808313 ReallySparky
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The new phrase is ScapePIGS.

Tue, 10/25/2011 - 11:22 | 1808374 eurogold
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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!

Tue, 10/25/2011 - 10:36 | 1808120 HITMAN56
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Tue, 10/25/2011 - 10:36 | 1808123 kito
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Tue, 10/25/2011 - 10:36 | 1808124 Irish66
Irish66's picture

End of quarter...must stay positive

Tue, 10/25/2011 - 10:37 | 1808125 Belarus
Belarus's picture

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. 

Tue, 10/25/2011 - 10:51 | 1808210 Uncle Sam
Uncle Sam's picture

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?


Tue, 10/25/2011 - 12:11 | 1808581 Ghordius
Ghordius's picture

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)

Tue, 10/25/2011 - 10:37 | 1808126 danger close here
danger close here's picture

Up 2400% on my nflx 100 put, risked 2400$ on 10 contracts; profit of 24k.

Tue, 10/25/2011 - 10:39 | 1808137 Peter K
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Your a star:)

Tue, 10/25/2011 - 10:39 | 1808139 Belarus
Belarus's picture

Don't just be up on the paper trade: lock it in. 

Tue, 10/25/2011 - 10:40 | 1808144 danger close here
danger close here's picture

Put in a order for 6 100oz silver bars just now.

Tue, 10/25/2011 - 10:42 | 1808158 HelluvaEngineer
HelluvaEngineer's picture

Awesome.  What's your home address again?

Tue, 10/25/2011 - 10:42 | 1808160 tmosley
tmosley's picture

Well done.

I don't like paper, but it's nice to see some people accumulate real capital by doing what you are doing.

Tue, 10/25/2011 - 15:21 | 1809500 pasttense
pasttense's picture

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).

Tue, 10/25/2011 - 11:11 | 1808317 Stax Edwards
Stax Edwards's picture

Very Nice Work!

Tue, 10/25/2011 - 10:37 | 1808128 Cassandra Syndrome
Cassandra Syndrome's picture

Strange this blackswan of an FT roumour doesn't cause markets to tank....

Tue, 10/25/2011 - 10:38 | 1808129 Peter K
Peter K's picture

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:)

Tue, 10/25/2011 - 10:38 | 1808131 YesWeKahn
YesWeKahn's picture

I just hope that those finance ministers have a degree in finance and know how to use a calculator.

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