Visualizing Where The Pain Is: Summary Of Biggest Exposures To Italy

Tyler Durden's picture

Yesterday's Barclays report that Italy is past the point of no return was very prescient. As of today, nobody can deny that Italy is about to drag the entire Eurozone down unless the ECB can come up with a real plan to monetize the debt, as opposed to backing some retarded contraption such as the EFSF which only the criminally stupid eurocrats can conceive, and which even the perpetually optimistic market has seen right through at this point. In other words: print. Lots. So until Mario Draghi gets off the phone with the corner office at 200 West for instructions on how to best proceed, here is a visual summary courtesy of Reuters, of where the max pain is concentrated. Needless to say, we are all so lucky that French banks managed to sell off their exposure to unwitting bagholders who took the sticky EURUSD as an all clear signal, instead of what it was this entire time: a side-effect of EUR repatriation as French banks were dumping USD-denominated assets and shoring up capital.

Source: Reuters

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GeneMarchbanks's picture

Hence your previous article: CONTAGION

I think most of us get it, may I ask who is most exposed to Frenchy? Never mind, I see now...

philosoraptor's picture

Who is most exposed to Italian debt? The French.

Who is most exposed to French debt? The UK.

Who is most exposed to UK debt? The US.

Plus, the Germans take podium positions on all the above.

Roll up, roll up, place your bets on the sequence of the domino reckoning...

HD's picture

How much time does the ECB realistically have to pull this off? Days? Weeks? Or is this a 2012 event?  How long before markets realize the math is impossible.

HelluvaEngineer's picture

It appears to be happening right now.  I mean, we've known this stuff for weeks, but "duh market" seems to be coming to terms with it today.  Funny how we just randomly gap down after days of ignoring the problem.

HD's picture

I would love that to be true. However, We've been here before too many times. Rumors, hopium and intervention always seem to pull it back from the brink. I have no reason to believe it won't happen again today. I just wonder how much longer they can keep it up.

Snidley Whipsnae's picture

Dow futures off 244 ... and thats an improvement from earlier.

Gold making another run at $1,800 but is buried in paper... as usual.

interesting times

HD's picture

"interesting times"

  That, my friend, is an understatement.

BanksterSlayer's picture

It was also a Chinese Curse rather than a Chinese Proverb. Those Chinese are awfully smart. Also the #3 shareholder of the IMF, according to Christine Lagarde's speech yesterday.


CH1's picture

How long before markets realize the math is impossible.


They'll look away until they're living in filth, then blame someone (Jews being the perennial favorites), then beg for a strongman to steal it all back for them.

ArkansasAngie's picture

Main Street USA doesn't really know this problem exists.

But Benny et al are aware.

This may well be his last opportunity to print before the pitchforks start showing up. 

I'm going to have to go look up write-in candidacies laws.  Seems like a nation wide write-in might be the best bet to beat whom ever the Republicans and Denocrats put forth.  Tyler ... you available? 

island's picture

Consider supporting Bill Still - writer of "The Money Masters" and "The Secret of Oz"

He is running for the Libertarian candidacy slot.

SteveNYC's picture

We haven't seen Ben's bag o' tricks yet to put the US taxpayer/dollar on the hook for the whole caboose. Definitely 2012.

RiverRoad's picture

Not if he loves his kneecaps.

Irish66's picture

Goldman Sachs (GS) says net funded credit exposure to Italy is USD 700mln and gross funded credit exposure to Italy USD 2.32bln, exposure includes sovereign, financials and corps.

rajeev's picture

I apreciate the insight in the report, which said Euro is making a dead cat bounce because of repartriation. I salute the analytical capacity. Great work!

rajeev's picture

I apreciate the insight in the report, which said Euro is making a dead cat bounce because of repartriation. I salute the analytical capacity. Great work!

Cdad's picture

Yes, yes...but when parsing any statement out of any US bank regarding exposure to European debt, you must use a multiple of at least 5.  Remember, this is the criminal syndicate, and they lie perpetually to buy time on their dumb ass moves.

You can bet big against them, as it is almost certain that ALL of them have been caught swinging for the fences on yield, shifting their positions to off balance sheet "tools".  Everything since 2008 remains the same because, of course, they were bailed out instead of taking the hit they deserved.

Confessions are already coming out of the European banks regarding hits taken on this bad debt.  The US will follow, and when they finally confess, that is when you take your short positions off.

Bodhi's picture

We all have a little of our neighbor's feces in our own closet. 

CrimsonAvenger's picture

Remind me never to visit your neighborhood.

ThisIsBob's picture

A great thing about globalization is that you can trade US leveraged index ETF's off Italian bonds.


paulie's picture

"Now I have a machine gun, oh oh oh"

tarsubil's picture

I don't know how this relates but...

Yipee ki yay, MF global.

1835jackson's picture

Bond vigilantes: "SHOW ME THE MONEY!!!!!!!!!"

ECB: “Patience… we need a crisis first…dumb asses” 

LawsofPhysics's picture

Yes, wait until it gets to the lebowski point - where's my money lebowski?

firstdivision's picture

Well, at least we don't have to worry about this contagion spreading to Iceland.

AngryGerman's picture

that non-bank private is a lot! what is that?

LawsofPhysics's picture

Question; "that non-bank private is a lot! what is that?"

Answer; "Where money goes to die."    Essentially the gas chamber of fiat currency.

firstdivision's picture

The Rothschild's family holdings.

LawsofPhysics's picture

This is what "winning" looks like with an eCONomy that relies on infinite growth with finite resources.

hedge accordingly.

youngman's picture

Where is the CDS graph?  That is a few trillion more...or less....or if this is ruled a non like the ECB is buying...can they go to trillions?   The bankers want it...the Politicians want it...what is a treaty or two...

TooRichtoCare's picture

Warriors.....come out to plaaaaay

Warriors.....come out to plaaaaaaaaay

Warrriors.....come out to plaaaaaaaaaaaaaaaay !!!

BurningFuld's picture

Would someone start bombing Iran already?

lizzy36's picture

What is the french word for "shart"?

LMAO that Blackrock said this morning: "Italian yields do not reflect country fundamentals".

Moral Hazard again as they were double fisting Italian bonds counting on a bailout. 

Fazzie's picture

Kudos to ZH for calling the EU collapse a long time ago and correctly calling all the intervening shuck and jive parlor tricks of the ECB and pals for what they were,ie, a desperate attempt of the unelected banksters of the world to keep the status quo fleecing of the middle class in full swing.

 A person watching CNBC all this time, by comparison would probably be of the mindset that "nobody, I mean nobody could have saw this coming".

FMR Bankster's picture

Just made the mistake of turning up the sound on CNBC. Cramer is absolutely freaking out. "SOMEBODY MUST STEP FORWARD RIGHT NOW TO STOP THIS." "SOMEBODY MUST BE CHURCHILL TODAY." "THEY MUST BUY BONDS AND DRIVE YIELDS LOWER." Funnier than hell.

francis_the_wonder_hamster's picture

I missed the Cramer freak-out.  Somebody PLEASE post a link to a replay of that.

campag's picture

All this weakness in bonds is known news its too old to called old news. At some stage 3.00pm stocks will bounce like yesterday .Bears be warned!

Roy T's picture

CNBC just announced that Greece will appoint a new PM at 10 AM EST.

Rally time!

snark off

ThisIsBob's picture

Greece is over.

 Its now frogs-n-wops.


Belarus's picture

The machines are going to be busy today. Expect the worst of the downturn to be over in futures. The machines don't wake up until the market's open and Europe closes. BTFD. 

radarsentinel's picture

France should get good money for their Treasuries today but then what will they have left?Oh, shit.

mm17101978's picture

Non-private bank debt owed by Italy to France should include (I guess Reuters included this elephant in the room in its calculations) years of unapid electricity imported by Enel into Italy from France (at least since 2001, as far as I was told a while ago). Moreover, if I recall correctly, out of about 1920 billion Euros (Italy's public debt excluded the usual enormous unfunded liabilities) Italy owes to France (for one reason or another) about 511 billion Euros. Meanwhile here in Rome, banks keep robbing people and corporations more and more aggressively (even a 10-euro charge for a bounced cheque is a matter of survival for....not to name anyone in particular........Intesa Sanpaolo). Will this country make it to 1/1/2012 without defaulting? It's the only way to, perhaps, clean up this 150-year-old place that has steadily become Europe's biggest debt hole.

RobotTrader's picture

Looks like we are going to get confirmed breakouts in both TIP and TLT today.

Unfortunately, nobody on this board was prepared to participate in a generational bond bull market extending beyond 35 years.

Stocks will crater for a few days, but it will only be a matter of time before 50-year record low interest rates will entice speculators to belly back up to the casino table and start chasing stocks with a vengeance.