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"Sold To You": European Banks Quietly Dumping €300 Billion In Italian Debt

Tyler Durden's picture


While the market is ripping today on absolutely nothing (earlier we noted the rotation of muppet X with muppet Y - this changes nothing but who cares), BTPs are soaring, and confusion is prevalent, one thing is certain: we now know who is not buying Italian bonds. As IFR reports, "European banks are planning to dump more of the €300bn they own in Italian government debt, as they seek to pre-empt a worsening of the region’s debt crisis and avoid crippling writedowns – a move that could scupper the European Central Bank’s efforts to bring down soaring yields. Still reeling from heavy losses on money they lent to Greece, lenders are keen not to make the same mistake twice.Then, under the pressure of governments and a hope that credit default swaps would protect them against heavy losses, they held on until it was too late to sell." And for our European readers who may be wondering who the dumb money will be as this tsellnami unleashes, we have one word: you. "With the ECB providing a bid for Italian bonds that might not otherwise exist, board members at some of Europe’s largest bank say now is the time to accelerate disposals. Many are also reversing long-standing policies of buying into new Italian bond issues, denying Rome an important base of support." And there you have your explanation for today's action - yet another headfake to get the idiot money foaming at the mouths while the insolvent banks quietly dump everything, sending the EURUSD once again higher as EUR repatriation resumes, this time with feeling.

As a reminder, Germany has made it an explicit condition of its participation in the now irrelevant EFSF that the SMP program which is the only program currently functioning to provide secondary market support, be unwound shortly. The SMP currently has just under €200 billion in total bond holdings. Does anyone really think Germany will allow the monetization fund to increase by 150% before Merkel says something? We doubt it. But we know one party that would be delighted if the SMP were to monetize everything: PIMCO parent Allianz, which borrowed a line right out of BlackRock and told the market it is effectively an idiot, and does not reflect fundamentals. Via the FT: "Allianz insisted it was unworried by the political and financial turmoil in Italy as the insurer, Europe’s largest by market capitalisation, suffered from the impact of the eurozone crisis on its bond investments and corporate holdings. The German group – which considers Italy a “second home market”, according to Oliver Bäte, chief financial officer – has some of the biggest sovereign exposure to Italy of any non-Italian financial institution, with government bonds worth €25.6bn at the end of the third quarter, equal to more than 6 per cent of the company’s €413bn fixed income portfolio." Is it clear now why the EFSF as a €1 trillion vacuum cleaner idea came straight out of Allianz? And is it clear now who has the most to lose with the failure of the EFSF as a multifunctional Swiss Army bailout knife?

If the answer is still no, here is where Allianz channels BlackRock:

“We believe the market situation is completely overblown,” said Mr Bäte on Friday as Allianz announced an 80 per cent drop in third-quarter net income. “We have strong confidence in [Italy] . . that it will be able to recover its situation and regain stability.”

The lies continue:

Mr Bäte said Allianz was cutting exposure to government bonds “for those countries where we have a critical perspective . . . This does not apply to Italy.”

As for the truth:

“Our traditional buying days [of Italian bonds] are no longer,” said one board member at a European bank, one of Italy’s 10 biggest creditors, who added that the bank has also sold off previous bond purchases. “Unless there is more certainty on Italians changing direction, it will be very tough for them to find buyers.”

It gets worse:

“You’re better off doing it now rather than waiting,” said one investment banker who is currently working on plans for bank clients to further sell down their Italian bond holdings. “It’s better to take the losses now when everyone is expecting it rather than wait around for a default.”


The ECB has been buying Italian bonds to keep down yields since August. Since then, the institution has bought about €110bn of European government debt, some of which traders say is Italian debt. Most sales have been and will be on the open market.


“The market is still as liquid as hell for those that want to sell,” added a senior banker at one non-European bank. “We managed to sell off half of our holdings in one morning.”

Completing the picture is the answer of who the dumb money is:

Italian bonds still have one support bloc. Domestic banks appear to be holding on to their much larger holdings. As of last December, EBA stress tests showed Intesa Sanpaolo held €60bn of Italian debt. UniCredit and Banca Monte dei Paschi di Siena held €49bn and €32bn respectively. Recent results indicate that those holdings have changed little.


“We will keep investing the largest part of our liquidity in Italian government bonds,” said Corrado Passera, chief executive officer at Intesa Sanpaolo, in a call with analysts this week. “We believe they provide the right yields vis-à-vis the cost. So no policy change on our side.”


Still, according to the investment banker advising firms on their Italian holdings, the domestic banks’ decisions to hold on could have more to do with their inability to offload such large amounts quickly and without deep losses. Indeed, some Italian bankers seem resigned to the situation.


“We feel that fears of a default are greatly overdone, but the market psychology is what it is,” added an executive board member at another large Italian bank, which is also holding onto its bonds. “Lots of players do not want to buy them. They think it is better to sell if you have the opportunity to.”


Capital concerns are also preventing them from selling. “The key issue is on solvency and I think they made a mistake in requiring us to hold more capital,” said the chief executive of a mid-sized Italian bank. “To meet these levels we cannot sell too much of our sovereign debt.”

So instead of selling, Italian banks are doing all they can to dodecatuple down!?

Right... Thank you for putting that target sign on your back. And also thank the Consob for actually extending the short sell ban contrary to what we said yesterday. Naturally, Europe will never allow financials to be shorted ever again.

Speaking of, where are those ALZ/ASSGEN CDS quotes again?


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Fri, 11/11/2011 - 14:41 | 1870493 GeneMarchbanks
GeneMarchbanks's picture

Poor Fink.

Fri, 11/11/2011 - 14:44 | 1870505 Ahmeexnal
Ahmeexnal's picture

We can only hope and pray that the iTalians man up and dump the euro.

Fri, 11/11/2011 - 14:48 | 1870522 Fiat Currency
Fiat Currency's picture

There will be 2 Euros ... one for the Europeans & one for the Europeons.

Fri, 11/11/2011 - 14:55 | 1870546 redpill
redpill's picture

Last one out has to peel the garlic

Fri, 11/11/2011 - 15:20 | 1870627 espirit
espirit's picture

Got collateral? Garlic won't do.

Who's going to buy uncollateralized sovereign debt? Buwaahaahaa.

Fri, 11/11/2011 - 17:42 | 1871008 trav7777
trav7777's picture

All the greaseball euro countries got to use the euro to give them germany's rate for a decade, so they did what any deadbeat with someone else's credit card would...they maxed that shit out.  And now, we're all stunned that fucking italy, who CHEATED to get into the EU in the first place, is still the deadbeat they always were?  I mean with the lira at wtf was it 1000:1 to good currencies? 

The northerners actually believed those greasy dagos would follow the same rules?  WTF?  Have white people really become that mindfucked?

Fri, 11/11/2011 - 23:25 | 1871559 greyghost
greyghost's picture

not an hour earlier the fox business channel had some fuck from wells fargo investments on touting the time is right to invest in european goverment debt. i thought at the time that wells fargo must have a boat load of shit to crime here...move along

Fri, 11/11/2011 - 15:16 | 1870619 aleph0
aleph0's picture






Fri, 11/11/2011 - 14:49 | 1870523 Chris Jusset
Chris Jusset's picture

"With the ECB providing a bid for Italian bonds that might not otherwise exist, board members at some of Europe’s largest bank say now is the time to accelerate disposals."

Such a nifty symbiotic relationship: the ECB sucks up the turds and shit that the banks dispose of.  The ECB is not only a toilet for the banks, but a rectal vacuum cleaner as well.

Fri, 11/11/2011 - 14:56 | 1870550 GeneMarchbanks
GeneMarchbanks's picture

Nifty, Chris, the turds and shit.

Fri, 11/11/2011 - 15:08 | 1870591 Roy T
Roy T's picture


Sounds like the Fed's purchases of MBS.

Fri, 11/11/2011 - 16:32 | 1870807 Chris Jusset
Chris Jusset's picture

Indeed!  So what does that make Bernanke?

Fri, 11/11/2011 - 15:40 | 1870672 chubbar
chubbar's picture

OT, Been out of the loop all day, did anyone post this little tidbit yet?


This looks interesting. Especially for the customers who have(had) accounts with MF Global. Hahahaha

Did MF Global Use $80 Million in Customers' Gold & Silver COMEX Warehouse Receipts as Collateral for a $300 M Short Term Loan?

Yesterday we advised readers that 1.42 million ounces of registered silver, and 16,645 ounces of registered gold are not currently available for delivery per the CME, due to the MF Global bankruptcy.

This is roughly $50 million worth of silver, and $30 million worth of gold- or $80 million total.
So the question needs to be asked- why are $80 million in gold and silver unavailable for delivery? Did it vaporize overnight?
Forbes today has released an article that may shed some light into WHY $80 million worth of registered gold and silver are currently unavailable- because the warehouse receipts of MF's clients were stolen by company execs and used as collateral for a short term $400 Million loan obtained in an attempt to bridge the failing company until a buy-out could be arranged. When the news of the loan and missing customer assets became public, the lender instantly liquidated the illegally pledged assets- [/b]which apparently included $80 million in registered gold and silver.

Still wondering why The Doc advocates taking PHYSICAL DELIVERY of gold and silver and holding in your own possession?

Now the question remains- WHO lent MF Global $300-$400 Million against $700 million of customer assets a week ago Thursday?

Why do I believe MF Global executives transferred customer assets not cash to “house” accounts? Because missing cash would be noticed immediately. Their clients were still trading and clearing and cash was required to settle. Securities such as U.S. Treasury Bills, blue-chip equities such as CME Group stock held by many exchange members, and physical assets such as gold, warehouse receipts, and other certificates of title are less active. They would not be missed Thursday through Monday.

What did MF Global do once these assets were moved to a “house” account? I believe they pledged the customer assets as collateral for a short term loan.
A privately arranged line of credit, secured by a basket of assets discounted by up to 50% due to the risk of default and the firm’s desperation, could be unwound as soon as a deal to sell the firm was struck. All the assets could go back into the customer accounts and no one would be the wiser. "............

Fri, 11/11/2011 - 15:56 | 1870708 Ahmeexnal
Ahmeexnal's picture

was it...Douche Bank???

Fri, 11/11/2011 - 14:41 | 1870494 Careless Whisper
Careless Whisper's picture

The Careless Whisper Afternoon Update


MF Global Terminates Everyone

NHTSA Investigates Safety Of Lithium-Ion Batteries After Chevy Volt Burst Into Flames

Memo To OWS: You Forgot To Trademark The Name; Sellout And Globalist Jay-Z Sells T Shirts

China Set To Overtake US In Internet Sales

Fiat Would Gain If Italy Leaves Euro’s-financial-storm--Chrysler-makes-the-difference

Miami Police Chief Orders: Never Pull Over Another Cop Unless He Is Engaged In A Felony

Man Who Openly Takes Credit For Fall Of Glass-Steagall Selling Manhattan Condo; $88,000,000

PHOTO OF THE DAY: Who's Your Daddy?

VIDEO OF THE DAY: Putin; Voting For Me Can Be Really Really Fun


Fri, 11/11/2011 - 15:02 | 1870572 lincolnsteffens
lincolnsteffens's picture

Funny ++ Who's your daddy! good one

Fri, 11/11/2011 - 14:43 | 1870501 Biggvs
Biggvs's picture

In other words, the ECB will more or less buy the Italian bonds from the banks.

Fri, 11/11/2011 - 14:58 | 1870559 walküre
walküre's picture

Fantastic. It's a bailout for the banks. ECB is 2 years behind the curve ball.

Don't ask where the money comes from, just ask what you can do with the money.

I get it.

Risk On. Fire away. Leverage yourself to the max and buy and hold for at least the next 12 months.

Right? Right?

Fri, 11/11/2011 - 15:42 | 1870669 DormRoom
DormRoom's picture

So let me get this straight.  European banks are offloading to the ECB (dumb money), which is backstopped by taxpayers.  So capital (plutocracy) has once again socialized risk, and privatized profits.






Fri, 11/11/2011 - 15:59 | 1870722 SheepDog-One
SheepDog-One's picture

Which also means theyre clear of any danger of losses so free to drop the crap out of the markets again soon as theyre done.

Fri, 11/11/2011 - 16:06 | 1870734 MachoMan
MachoMan's picture

Given the FED's propensity to engage in swaps, I'd say you're talking about american taxpayers...

Fri, 11/11/2011 - 16:10 | 1870741 walküre
walküre's picture

Yes, exactly.

OWS needs to change their strategy.

Beat THEM at their own game instead of uncovering thruth that nobody cares about.

Think about it. For example, get millions of Americans to max out every credit card, every loan, hoard cash and gold and hide it.

Fri, 11/11/2011 - 17:22 | 1870953 Strider52
Strider52's picture

Since most of us agree that Wall Street is full of nothing but crooks, I suggest that instead of occupying it, we build a prison wall around it. Nobody gets out unless yu can prove that you're NOT one of the bad guys.



Fri, 11/11/2011 - 19:39 | 1871247 XitSam
XitSam's picture

Yeah! And then Air Force One can crash there and the government can send in Snake "Call me Snake" Plissken to get him out.

Sat, 11/12/2011 - 09:38 | 1871949 fajensen
fajensen's picture


Fri, 11/11/2011 - 14:46 | 1870510 Manthong
Manthong's picture

"a hope that credit default swaps would protect them against heavy losses"

If you understand this disconnect, you understand the complete lie that is the market today.

Fri, 11/11/2011 - 14:46 | 1870512 Ruffcut
Ruffcut's picture

Quietly selling huh? Lying sacks of shit need the piss kicked out em.

Fri, 11/11/2011 - 14:46 | 1870514 Racer
Racer's picture

So yet another backhanded bailout for banksters

Fri, 11/11/2011 - 14:51 | 1870530 Raskolnikoff
Raskolnikoff's picture

that's funny, Cramer was on the tube this morning talking about how he was buying some Italian bonds, what a coincidence!

Fri, 11/11/2011 - 14:52 | 1870535 ItsDanger
ItsDanger's picture

ECB will buy the bonds, roll it over, and repeat.  Only when the cash flow stops from the stronger nations will this end.  Will China, or other countries step in at that pt and purchase assets?  These clowns are destroying future generations because no one has the courage to lead.

Fri, 11/11/2011 - 14:53 | 1870537 The trend is yo...
The trend is your friend's picture

When the mere survival is at stake for the banksters, THEY WILL PRINT...The ECB will backstop the Italian Bonds as well as France when it gets to them.  The Sharade must go on

Fri, 11/11/2011 - 14:53 | 1870538 ZeroPoint
ZeroPoint's picture

Both the ECB and the Federal Reserve need to be flushed down the toilet and people every where need to say "never again".



Fri, 11/11/2011 - 15:06 | 1870586 Snidley Whipsnae
Snidley Whipsnae's picture

The bloated balance sheets of all central banks, including the Fed, will be dumped into the IMF in return for SDRs.

Like this...

worthless crap from central bank balance sheets traded to IMF for worthless crap SDRs.

SDR = just another piece of worthless paper

When IMF balance sheet gets so bloated that no one will accept SDRs then a Martian Central Bank will be called on to trade REITS on Mars for whatever crap exists on the IMF balance sheet... and some idiots will be writing CDS on the Martian REITS... Next up Venus, Jupiter, the fucking moon, whatever...


Sat, 11/12/2011 - 09:53 | 1871957 fajensen
fajensen's picture

Haha: Its an idea for a game!

A network of nodes interconnected with pipes all leading to bigger, more fortified, nodes with the central bank in the middle. The nodes suck up ressources and spill toxic waste in return. The objective is to use a fighter plane to kill regional nodes before their poison kills the players ressource accumulation (ressources are gathered from unpoisoned land and used for upgrades), thereby cutting the central feed to to lower nodes, causing them to die too, until enogh regional defenses are down to take on the main node(s).

There is a time limit: Killing regional nodes causes toxic sludge to migrate up the pibelines towards the center nodes. Not killing nodes causes the sludge to poison your ressources. When enough sludge has accumultated in a node, it will detonate in a nuclear explosion that will devastate the local landscape and kill the player if he is close. The central bank node will blow half the planet away - if it blows up before it is destroyed by the player.

Fast and frenetic gameplay. Wee.

Fri, 11/11/2011 - 14:55 | 1870539 Mercury
Mercury's picture

    "Sold To You"

    BLK: "Done."

Fri, 11/11/2011 - 14:58 | 1870560 GeneMarchbanks
GeneMarchbanks's picture

Fundamentals... (snicker)

Fri, 11/11/2011 - 14:56 | 1870551 Socrate
Socrate's picture

Say what? It looks like European banks are dumping their PIIGS bonds directly in ECB's hands. It is all as planned under the table during the October 26th euroheadz meeting. And all of this - to prevent writedowns to happent and to make moral hazard less possible the way that PIIS wanted it to be (eg. asking for write downs just like Greece).

In other words, it looks like all the toxic bonds will be only in ECB's hands and it is somewhat funny. They are the only one who deserve these zero-cost bonds.

Fri, 11/11/2011 - 14:57 | 1870555 XtraBullish
XtraBullish's picture

Glad to have bought the crash in September and am XtraBullish. ZeroHedge continues to provide the perfect offset to CNBC bullshit and for that I am grateful. However, I am most certainly bullish for a move into the Spring and you know what? We haven't seen new highs in years despite record money-printing. I see 1,600 on the S&P by Summer 2012. That's the good news. The bad news is that it will cost $5.00 for a loaf of bread.

Fri, 11/11/2011 - 15:02 | 1870571 jomama
jomama's picture

not sure where you live, but it already costs 5 bucks here in the ca. bay area.

that is, for whole bread, not the HFCS/bleached wheat garbage bread.

Fri, 11/11/2011 - 16:06 | 1870732 SheepDog-One
SheepDog-One's picture

$5.50 a loaf for anything worth eating here, and the garbage bread is $3.
Rock on bankrupt US. Hey stocks are up, nothing to see here!

Fri, 11/11/2011 - 19:47 | 1871260 XitSam
XitSam's picture

Bread machine. My Zojirushi is nice.

Mon, 11/14/2011 - 14:10 | 1876134 Jena
Jena's picture

Me too.  Added plus:  You control what goes in it and more importantly, what doesn't.

Fri, 11/11/2011 - 15:51 | 1870695 Hohum
Hohum's picture


You may be right; you may be wrong.  However, the junkers don't want to look at correlations.  Sure equities up.  But, as usual, oil up, dollar down, gold/silver up.



Fri, 11/11/2011 - 16:04 | 1870730 SheepDog-One
SheepDog-One's picture

XtraBullshit with the dollar drop and oil up, youre not even keeping even with your 'bullish' stance on stocks....losing.

Fri, 11/11/2011 - 17:16 | 1870937 Poetic injustice
Poetic injustice's picture

RobotTrader, please use your handle to avoid misunderstandings.

That was addressed to handle XtraBullish.

Fri, 11/11/2011 - 14:58 | 1870557 kito
kito's picture

lets all give thanks to blackrock!!!! if it wasnt for them, the fed would be forced to buy this crap

Fri, 11/11/2011 - 14:58 | 1870558 fonzanoon
fonzanoon's picture

the federal reserve owns all our toxic shit. Seems to be working well enough here.

Fri, 11/11/2011 - 15:05 | 1870581 walküre
walküre's picture

It sure seems that way. All logic has been abandoned though. Debt that keeps growing and can never be repaid.

Growing debt that is serviced by reduced revenues and nobody wonders just how it's done.

OWS is on the wrong path.

There's only one way to get to these fuckers and it's by beating them in their own game.

Fri, 11/11/2011 - 14:59 | 1870562 RobotTrader
RobotTrader's picture

FSLR is my proxy for Europe debt

If it makes a sharp reversal, bears need to watch out.

Tons of hedge funds are short this stock as an artificial hedge against Euro sov debt.

46% of the shares floated are now short.

Fri, 11/11/2011 - 15:03 | 1870575 Careless Whisper
Careless Whisper's picture

46% of the shares floated are now short.

Goldman upgrade imminent. Short squeeze heaven.


Fri, 11/11/2011 - 15:09 | 1870598 jcaz
jcaz's picture

Ahh, once again, Robo to the rescue, calling another market top.....

Fri, 11/11/2011 - 15:12 | 1870607 Cruel Aid
Cruel Aid's picture

That is a perfectly ugly looking chart and it is going to be a race for the door at some point.

It is not a fundamentally flawed company.

Fri, 11/11/2011 - 15:21 | 1870630 CvlDobd
CvlDobd's picture

Whoever junked the robo post is Most likely a terrible trader. Bein long during a squeeze can be epic. Think before you trade or junk just because it's a robo post.

Fri, 11/11/2011 - 17:32 | 1870983 fuu
fuu's picture

STFU noob.

Fri, 11/11/2011 - 16:00 | 1870701 SheepDog-One
SheepDog-One's picture

Really Robo who else do you have in your Fantasy Stock League lineup for today?

Fri, 11/11/2011 - 14:59 | 1870565 monopoly
monopoly's picture

Excellent article Tyler and makes perfect sense. When all is quiet that is when you attack, or sell in this case. And our markets continue to walk past the graveyard, time and time again. Europe, when it blows up will take us down with it. 

Fri, 11/11/2011 - 15:05 | 1870580 slewie the pi-rat
slewie the pi-rat's picture



clown cars & top hats!



Fri, 11/11/2011 - 15:10 | 1870601 Snidley Whipsnae
Snidley Whipsnae's picture

I'm long Martian REITS... hedged by CDS on Yellowstone Mega Eruption.

Fri, 11/11/2011 - 15:55 | 1870704 SheepDog-One
SheepDog-One's picture

Thats right, after todays Jump the Shark about the only thing they can top this with is aliens landing full of Martian bond buyers.

Fri, 11/11/2011 - 16:24 | 1870795 slewie the pi-rat
slewie the pi-rat's picture



  • may yer swaps not be eradicated
  • by events not unanticipated
  • being adjudicated
  • a haircut
  • burma shave, BiCheZ!
Sat, 11/12/2011 - 06:11 | 1871863 Antipodeus
Antipodeus's picture

I luv slewie! ... ;=))


Fri, 11/11/2011 - 15:10 | 1870603 Bansters-in-my-...
Bansters-in-my- feces's picture

$300 Billion......

Fuck I first thought you said Trilliion.

$3oo BILLION is fucking chimp change these days.


When the Bankers are waving their right hands,watch their left.

Fri, 11/11/2011 - 15:11 | 1870604 Earl of Chiswick
Earl of Chiswick's picture

a Reuters photographer captures this private moment has G-Pap hands off to L-Pap

Fri, 11/11/2011 - 15:12 | 1870606 yogibear
yogibear's picture

Bundle it up and mark it with other AAA and problem solved for a while until it blows up. Fraud and financial engineering is still very active and moving the markets. Worry about it later. Dump it on the taxpayers when it really stinks. No jail, Angelo Mozilo proved the politicians have very high respect for criminals.

Fri, 11/11/2011 - 15:17 | 1870620 chaartist
chaartist's picture


Fri, 11/11/2011 - 15:18 | 1870621 truont
truont's picture

So, Blackrock,

It sounds like Italian bonds will be even *more* attractively priced soon, than when you bought in October!

Double-down on Italy, Blackrock!  Show us you stand behind your call!

Fri, 11/11/2011 - 15:34 | 1870641 Eeyores Enigma
Eeyores Enigma's picture

"...a move that could scupper the European Central Bank’s efforts to bring down soaring yields."


Be that a rusty scupper matey? Arrrrrrrrgggggg!!!


great book by the way...perhaps the precursor to Arab spring and Occupy everywhere movement?

Fri, 11/11/2011 - 15:28 | 1870642 Aunty Christ
Aunty Christ's picture

And there you have your explanation for today's action - yet another headfake to get the idiot money foaming at the mouths while the insolvent banks quietly dump everything, sending the EURUSD once again higher as EUR repatriation resumes, this time with feeling

Insolvent European banks selling Italian bonds leads to higher Eur/$ rates???

Fri, 11/11/2011 - 15:56 | 1870711 SheepDog-One
SheepDog-One's picture

'Idiot money'....RoboTarder and his daily Fantasy Stock League lineup.

Fri, 11/11/2011 - 15:28 | 1870643 Dick Darlington
Dick Darlington's picture

Still reeling from heavy losses on money they lent to Greece, lenders are keen not to make the same mistake twice.

Twice? Uh huh... There's Portugal and Ireland between Greece and Italy. How's those losses doing?

Market commentary today pretty much like this: " We see RM continue selling into the rally, fast money covering shorts. No real buyers so the magnitude of the rally feels very strange."

Fri, 11/11/2011 - 15:30 | 1870651 RobotTrader
RobotTrader's picture

Its all about following the Wildebeest herds

Just find out which way the big money is going

And follow their coat tails and ride along

Right now, they are itching to buy stocks, many of them are still holding back until they get more "words" out of Europe that reverses the bear raid on the sovereigns.

As soon as they get the green light, then its going to be "Balls to the Wall" Pell Mell run for the roses into the year end statement print.

Fri, 11/11/2011 - 16:02 | 1870725 SheepDog-One
SheepDog-One's picture

'Just find out which way the big money is going'...RoboTarder got that all figured out with plenty of Windex for his rearview mirrors attached to the monitor.

Fri, 11/11/2011 - 15:30 | 1870652 walküre
walküre's picture

Rhetorical question

Who is buying? Why are they not coming out and saying it? Is this the equivalent to PRINT PRINT PRINT?

Inquiring minds would like to know. Of course they won't say it. This is akin to coming like a thief in the dark and stealing.

Ok. I get it. Hyperinflation is upon us. No two ways about it.

Fri, 11/11/2011 - 16:09 | 1870745 knukles
knukles's picture

What if there were no rhetorical questions?

Sat, 11/12/2011 - 06:15 | 1871864 Antipodeus
Antipodeus's picture

Is that a rhe ... never mind.   ;=))


Fri, 11/11/2011 - 15:32 | 1870656 Sequitur
Sequitur's picture


No question, the Euro is going to implode spectacularly. DOW and S&P below 9,000 and 1000 when the EU disintegrates. That's when smart money may purchase some solid equities.

Fri, 11/11/2011 - 15:35 | 1870661 Market Efficien...
Market Efficiency Romantic's picture

Just for a sidenote, Baete is head of risk and Paul Achleitner, former German CEO of Goldman holds the CFO position at Allianz. Achleitner, IMO a very bright mind, has turned really silent recently, though. I guess, he has a notion what to expect for Allianz in the not too distant future and minimized his public and market exposure.

Fri, 11/11/2011 - 15:37 | 1870667 transaccountin
transaccountin's picture
  • Italy to ban naked short-selling on whole regulated stock market from midnight December 1
Fri, 11/11/2011 - 15:42 | 1870675 unionbroker
unionbroker's picture

Big news a friend of mine bought 500 shares of a us bank stock i told him he was probaby the only real trade of the day

Fri, 11/11/2011 - 16:20 | 1870784 sabra1
sabra1's picture

did you tell RobotTrader to confirm with you next time?

Fri, 11/11/2011 - 15:42 | 1870677 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

This stocks/EUR correlation is beyond ridiculous. I have stayed away from the market because it is a broken, manipulated clusterfuck of idiocy. But with very dry gunpowder and a shitload of capital, I am thinking that around these levels, I might just be the algos huckleberry and have a piece of their sorry silicon chipped ass.

Fri, 11/11/2011 - 15:43 | 1870680 Seasmoke
Seasmoke's picture

2008 too big to fail

2011 too big to save

Fri, 11/11/2011 - 15:49 | 1870690 Market Efficien...
Market Efficiency Romantic's picture

"2011 too big to save" = too big to swallow for the German public

Fri, 11/11/2011 - 15:53 | 1870700 Ewe235
Ewe235's picture

"as this tsellnami unleashes"

"tsellnami"----  I love it !  And no, it's not too soon.

Fri, 11/11/2011 - 20:36 | 1871322 Sunshine n Lollipops
Sunshine n Lollipops's picture

I don't think Tyler(s) get enough credit for their comedy writing skills. That one made me laugh, too.

Fri, 11/11/2011 - 15:59 | 1870719 Bunga Bunga
Bunga Bunga's picture

"We believe the market situation is completely overblown

Looks like he took this phrase from the subprime script book. Be cautious ...




Fri, 11/11/2011 - 16:01 | 1870721 Belarus
Belarus's picture

Well....we've seen headfakes take the market up from 1080 to 1265 for a 17% return. And it'll likely head to 1400 by years end. So all the talking down in the world doesn't seem to matter as the market is finally doing what it does best: discounting the future. And the future is as Ron Paul says:


What ZH is missing is that the stimulus is already here and we don't need moneitization for the market to understand that it's coming regardless. You can't fund 1.5 trillion in unfunded deficit spending without the Fed. The market knows this.....and 1.5 trillion is getting transferred into the economy annually right now and equities know this.

The market knows the Fed is coming in, even if the aren't current QE's.

Just put 1/2 your assets into Gold and Silver. If the market melts down before the next QE buy the other  1/2 then. And everything elwe, every article, every doomsday predition, while true, will only make you make bad decisions. Don't. Just buy gold and silver and be patient. If you've got to own equities buy railraods like CNI, it's cheap, and other inflation protected assets. Remember, reflation is the only hope for the desposts. And inlfation they'll get. 



Fri, 11/11/2011 - 16:02 | 1870726 SamAdams1234
SamAdams1234's picture

A new day for German exports:

The ultimate Quant Ease

Fri, 11/11/2011 - 16:28 | 1870739 anonnn
anonnn's picture

...Then, under the pressure of governments and a hope that credit default swaps would protect them against heavy losses, they held on until it was too late to sell."...

Reminder: Just who are the actual persons hiding behind the fog of "pressure of governments"? And what are their covert agendas?

Transparency of the authors [as in 'governments" and " authorities"] would disable  the fleecing of marks and other victims of domination. There would  be no need of that last desperate act... revolution.

Fri, 11/11/2011 - 16:22 | 1870786 KickIce
KickIce's picture

Wonder how much gold/land is being used for collateral?  Everything comes at a price and I'm sure the devil is in the details.  Our politians will sell their soul and your shirt of your back to kepp the illusion in place.



Fri, 11/11/2011 - 19:58 | 1871269 XitSam
XitSam's picture

They are selling the future.  Land and gold are actual wealth.  Debt is a future obligation.

Fri, 11/11/2011 - 20:02 | 1871275 Buck Johnson
Buck Johnson's picture

Isn't funny that the Bond market was closed today and the Dow shot up the way it did also.  Soon we will be in a world of hurt.

Fri, 11/11/2011 - 20:37 | 1871324 topcallingtroll
topcallingtroll's picture

This goes to show why europe will always be an untrustworthy player in the world. The world looks to the united states in crunch time.

Europe is just a waterboy with dreams to be a player someday.

When crunchtime came, the united states stepped up and honored swaps, 100 cents on the dollar.

The world knows europe cheated on CDS triggers. Now banks know they cant hedge european sovereign debt.

Europe has a long history of inflation, sovereign defaults, and "workouts" throughout the 20th century. I couldnt even begin to list them all. Even when roosevelt took the usa off the gold standard we continued to honor our international contracts in gold at the previous price. We have only one international default in the 20th century, Nixon breaking the bretton woods agreement.

Maintaining long term credibility is more important than temporary gains.

The world will continue to revolve around america, unless we start making serious mistakes too.

I am afraid we may screw it up, but I hope not. Better to let people starve than allow loss of confidence in our financial system.

Fri, 11/11/2011 - 21:16 | 1871371 PulauHantu29
PulauHantu29's picture

CBs will have to print lots of cashola to buy all that EuroTox.

Fri, 11/11/2011 - 21:38 | 1871403 Coldfire
Coldfire's picture

The ECB is taking the Italian paper off the banks. Who is ultimately responsible for the ECB? EU taxpayers. The Euro crisis is a banking crisis, with the welfare states willingly selling their subjects down the river to rescue the banks, hoping they will return the favour. Banking symbiocracy at its most corrupt. You know it's not going to work, the money is gone, gone, gone. Printing more will simply destroy the unit of account.

Sat, 11/12/2011 - 05:31 | 1871850 chrisina
chrisina's picture

As a reminder, Germany has made it an explicit condition of its participation in the now irrelevant EFSF that the SMP program which is the only program currently functioning to provide secondary market support, be unwound shortly.

wrong info, which stems from bad translation of German parliamentary decisions!


for those who read German, here is the decision passed in the Bundestag on 26. Oct. 2011:


translation w.r.t the II.4

"In the light of these facts, the Bundestag understands that with the entry into force of the EFSF, the continuation of the ECB Secondary Market Program is no longer necessary”

This is NOT an explicit condition of Germany's participation to the EFSF. Those explicit conditions come in the part III of said document which nowhere mentions anything w.r.t the SMP.


More info here:


Sat, 11/12/2011 - 11:06 | 1872011 mess nonster
mess nonster's picture

Ron Paul is right... sort of, or at least short term. Inflation is coming. The ECB will have to prit its way out of this. It is the oly last option available. After the usefulness of lies and stonewalling is exhausted, printing is all that is left.

Of course, it is printing of debt, and the world's 7 billion slaves will pay off the debt.

In my neck of the woods, there are hidden trip- cameras in the backcountry. Several reputable people have found them.

This is how one guy described the experience:

"It's creepy. the camera body is camoflaged and well protected, hidden in trees and in rocks... the power source is separate and connected by a cable to the camera so it can be more carefully hidden. The cameras are directed at road junctions, and are not wildlife cameras, because they are pointed at roads, and it is obvious they are there to record vehicles.

"The one we found freaked me out... You just want to smash the damn thing, but then you think, 'My God, I don't want them coming after me...' You have all sorts of ideas- should I just take it? Tape the lens over? fear is the big feeling. So you just dust out your tracks and make a mental note that it is there. It's all about 'cover your ass' and make sure they don't know who you are."

The conection to the Euro-crisis? We're all peons and debt slaves, and if you have some uppity and presumptuous ideas of individual freedom, better think again, because eve the most remote and inhospitable areas of the wilderness are monitored, and you cannot run away from your debt obligations.

Do NOT follow this link or you will be banned from the site!