The Vespa Has Crashed Into The Mountain: Italy Burning

Tyler Durden's picture

Italy undergoing a slow motion crash, with bank after bank getting halted, first Intesa, then Monte Paschi, and most recently, main bank Unicredit. The FTSEMIB is now down a whopping 5.5% from intraday highs, led by the financial sector which may or may not last the week absent another EFSF expansion as we have speculated before. Of course, should that happen, Italy becomes a liability and not a funder, meaning the proportional obligations of Germany and France will surge, just as we explained two weeks ago. And more bad news: the spread between the 10 year Italy - Bund just hit an all time wide of 349, +16 bps on the session, as Italy CDS are now trading 328, +12, and Spain is 9 bps wider to 374. Time for bailout #3, this time to rescue Italy, then Belgium and Spain, then France and the UK, until finally the Fourth Reich, in the darkness, shall bind them. 

General Italy

And just the country's top (and we use that term loosely) banks:

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Quintus's picture

"...until finally the Fourth Reich, in the darkness, shall bind them. "


Liking the Tolkien reference.

One currency to rule them all

One currency to find them

One currency to fuck them up

And in austerity bind them

john39's picture

Tolkien took that bit about rings straight from the legends of king solomon, who used his magic ring to command fallen angels and jinn to build the temple.  

DormRoom's picture

Actually, Tolkien took that reference from Wagner's, The Ring trilogy

john39's picture

since wagner lived a few years after the time of king solomon, I think we can safely deduce the origin of the theme.

edwardscpa's picture

 A trilogy in four operatic parts.  lol.  Never did get that.

Crack-up Boom's picture

Weird - as I was scrolling between articles I was thinking this whole mess has gone Wagnerian.  I guess I'm not the only one who feels that way.  Tolkienesque, Wagnerian, Biblical -- all good words to describe the post 2k8 period. 

bob_dabolina's picture

lulu and aapl dont care

SheepDog-One's picture

Yep Mr Bob Dobolina, they got to keep the 401K bathrobe brigades placated until those funds are seized by the Treasury one overnite soon. Peace.

bob_dabolina's picture

I'm just trying to be like Robo for a day

viator's picture

Please, eveyone is on vacation. Bring this up next month

“Last summer, the crisis cooled partly because euro zone politicians went to the beaches and stopped contradicting each other in public every day,” one senior EU official involved in the Greek rescue negotiations said. “That moment can’t come soon enough this year.”

So Close's picture

What is 5% of zero?

Sudden Debt's picture



amsterdam's picture

I don't even think they have enough money to fill up the vespa to reach the mountain!


jkruffin's picture

As much as everyone hates the old FRN, it is time to go long the dollar I do believe!!!!  Stock crashes worldwide!!!   Especially, get long USD/JPY for a little intervention boost.

Larry Darrell's picture

I think I'll continue shorting all failed currencies, including the dollar.

I have no desire to boost it's legitimacy/credibility in any way.

SheepDog-One's picture

Right, Im not betting on the swayback old nag just because the other horses are sick too.

Mr Lennon Hendrix's picture

I guess this means Italian leather will be affordable come financial armageddon.

SheepDog-One's picture

Ferraris available at Kia prices soon, bitchez.

bernorange's picture

Yeah, but you won't be able to afford the gas for it when the day comes.

Doña K's picture

A cappuccino though is still 8 euro

Iam_Silverman's picture

"I guess this means Italian leather will be affordable"

Good news!  I need to re-upholster the seats in my Cordoba.  Have you priced "Rich Corinthian Leather" here recently?  Italian leather should be fine.

Rodent Freikorps's picture

Marketing bullshit.

Cow hide is cow hide.

Neat's Foot Oil will turn even a catcher's mitt into silk.

Iam_Silverman's picture

"Cow hide is cow hide."

Uhhmm, it was a joke.  For those of us old enough to remember Ricardo Montalban espousing the Chrysler Cordoba with "Rich Corinthian Leather" it evokes a chuckle - as there is no such thing.

Bolweevil's picture

Bag Balm will work wonders on your teeny squirrel nipples. That's no bullshit.

snowball777's picture

True, but it's going to be made out of Italians instead of cows.

It ain't all bad though, Berlusconi's hide looks pretty stain-resistant at this point.

Sudden Debt's picture

We"ll always have Cyprus...


Rodent Freikorps's picture

Wouldn't you hate to be a Greek in Cyprus right about now? Greece is beyond bankrupt, and Turkey is radicalizing.

Crack-up Boom's picture

... and Cyprus exploded.   Time to flash Game Over and hit the reset. 

qussl3's picture

Gaddafi may have something to do with it lol.

Italy going to get reacquainted with the oil sword soon.

SheepDog-One's picture

IL Popa seen fleeing to Brazil yet in his personal gold C-130 transport plane yet?

treemagnet's picture

Germany is losing that loving feeling.  So it was cool to join that EuroClub way back when - now its like they're looking around and feeling really awkward cause the whole club is full of losers wearing members only jackets acting cool.

NoClueSneaker's picture

Yepp, love feeling gone . No cash fer german made weapons from the poor bastards. Greeks bought just 500 tanks, 3 submarines and Siemens had a lot of fun shaving the whole EU.

Sheeps r skinned, time for DeutschMark Reloaded .....

Rodent Freikorps's picture

Siemens is making a killing helping the mullahs in Iran stay in power and oppress their people.

Seems Siemens still has a soft spot in their black hearts for at least Nazi-ish governments.

No humanitarian would trade with this dishonorable company.

High Plains Drifter's picture

siemens controllers used in iranian nuclear plants are very susceptible to stuxnet.  we use siemens controllers as well. we also have israeli security companies guarding our nuclear facilities like japan did and probably still does? hmmmm........

Ancona's picture

It's the Taliban doing this.....I'm certain of it.

NervousRex's picture

Because, in the 60's, you could not get injured on a Vespa.

Or this one, sexpa:


hedgeless_horseman's picture

Thank goodness American banks are strong.


BAC -26.84% YTD.

falak pema's picture

BAC??? enlighten me plse.

are they  (US bnks) really strong inspite derivative plays and shadow banking unknowns or are they QE boosted strong?

Byte Me's picture

then France and the UK, until finally the Fourth Reich, in the darkness, shall bind them. 


France and Britain have something New Einige Deutchland doesn't have: Standing armies and Nukes.

Germany ain't going to bind the hands of the kine, ever again.

High Plains Drifter's picture

the french and brits have armies ?  oh really?   what difference does it make?  who controls europe?  who really?

john39's picture

hey, you can't say that... its a thought, er, hate crime.  truth is no defense!

Byte Me's picture

The French


They've also done the most to fuck it up too -- in their own interests, of course.

FunkyOldGeezer's picture

Italo 40 index has been a brilliant index to day trade for months now. So much volatility, virtually every day. Spanish IBEX is also a good'un.