Watch Merkozy Cracking Up Following Question If Italy Can Implement Reforms

Tyler Durden's picture

Even our non-polyglot readers will have zero problems understanding the response (in French) by Merkozy, when asked during the press conference, whether Italy, which has the second largest debt load in Europe at $2.2 trillion and inches behind German, will succeed in implementing promised 'reforms.' The wholesale laughter 19 seconds in the the clip, by not only the entire audience, but by Merkel and Sarkozy pretty much explains what the "next steps" in Europe are as the continent has now given up any pretense it is even trying to keep a serious facade on the upcoming serial defaults... and why 10 Year BTPs will need much more than just the SMP, EFSF and the hand of god to stay above 90 in the coming week.

Source: La Repubblica

As for the question of why Italy provokes laughter, we are not too sure. After all, as Italy goes, so does the world.

As a reminder...

And...The truth about Italy:

  • Morgan Stanley estimates net issuance should total 35 billion euros per year in 2012-2013, less than expect annual coupon payments of around €45 billion per year
  • A total of €157 billion in Italian government paper will fall due by the end of the year. Redemptions will peak in September, when €46 billion of BTP CTX bonds mature
  • Italy has raised €277.4 billion euros in debt so far in 2011, or 65.3% of its full-year target, the Treasury said - suggesting further issuance of €147.4 billion, according to Reuters calculations
  • Italy's public debt stood at €1,890 billion at the end of April, according to Bank of Italy figures. The public debt figure includes postal savings
  • Italian government bonds and short-term bills totaled €1,583 billion at the end of June according to Italian Treasury data. Their average term was 7.09 years
  • A one percentage point increase in Italy's debt yields adds about €3 billion euros to interest payments in the first year, and twice that in the second, the Bank of Italy has said
  • Italy forecast in April that 2011 debt servicing costs would total 4.8% of GDP, or about €77 billion
  • The International Monetary Fund estimated in April that 47% of Italian 2010 government debt was held abroad. Morgan Stanley last week estimated foreign holdings at 44%
  • Banks domiciled in Italy held €192 billion in Italian government securities at the end of May, Bank of Italy data showed last month. In the first quarter of 2011 they also held €589 billion euros in government securities on behalf of their clients
  • European Banking Authority data showed in July that Italy's five lending retail banks had a net direct exposure to Italian sovereign debt of €159 billion. Intesa Sanpaolo is the most exposed with €57.6 billion, followed by UniCredit with €47.5 billion
  • Morgan Stanley said domestic banks and insurance companies could quite easily buy net €60 billion a year in Italian government debt for the next few years
  • JP Morgan analysis said Italian banks will have to refinance €53 billion of maturing bonds in wholesale markets next year
  • The €600 billion Italian pension fund and insurance industry has increased its holdings of domestic government bonds by 10% in the last three years to 32% of assets, according to JP Morgan
  • Analysts estimate that an increase in the average cost of Italian public debt drives a similar rise in the cost of banks' bond issues
  • JP Morgan and Morgan Stanley analysts estimate Italian banks' holdings of government bonds at around 6% of their assets - a higher figure than 5% for Spanish banks and second only within the euro zone to Greek banks' 10%

h/t Stock_Bitch



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Ahmeexnal's picture

Merkel the Hutt should be lynched.  So should her sidekick the zark.

gmj's picture

Isn't that Sarkozy on the scooter?

SGS's picture

"Morgan Stanley estimates net issuance should total 35 billion euros per year in 2012-2013,"

I thought we were referring to this dump as Margin Stanley from now on.

ceilidh_trail's picture

Geetner in the driver seat??

acttang's picture

The picture is definitely off the point of the discussion, but it is REALLY hilariou. Look at the dude right next to the woman and his hand, I mean, c'mon...

Zero Govt's picture

Merkal i'm pretty sure will be lynched ...her support in Germany is already getting slaughtered, it's not far to go for those same voters to protest further than the ballot box

..and regards Sarkozy laughing at Italy this clucking vacuous French cock is also political French toast and everyone will surely have the last laugh on his shambolic unproductive reign

Lastly where is the UK in the bubble blowing chart above? Following 14 years of the most corrupt, incompetent and suicide socialist Labour Govt in British history we now have the same clucking cock of a pretend conservative just like Sarkozy in David 'call me twat' Cameron as a Prime Minister.

This Eaton socialist of a headless chicken has hiked taxes on the private sector when they least need it to further bailout the most bloated and stinkingly corrupt Westminster ever ..this waffling moron has already surpassed the most unpopular Tory PM of yesteryear, the huffing chuffer Edward Heath, in opinion polls.

Whichever way you look in any country the 'choice' seems to be between a pig with lipstick and flatulence and a turkey with small pocks and diarrhea... but you know however ugly this parade of the worlds village idiots are, there's the same bunch of banking and elite cartels behind them with their hands up their backsides

My how pretty this line-up (stitch-up?) of 'democracy' 

chump666's picture

"...aSarkozy laughing at Italy this clucking vacuous French cock is also political French toast and everyone will surely have the last laugh on his shambolic unproductive reign"

hahaha +1


d_senti's picture

US citizens suffer from US citizenism with cynicism, and it's all the fault of OWS secret communists. (50 links)

Sorry, just trying to head off AnAnon and Quixote before they get here.

goat's picture

Wow!  Just gotta say thanks.  Saved me some time.

Michael's picture

The most difficult lesson consumers will need to relearn is this;

Don't Buy Stuff YOU Can't Afford!

We have a lot of work ahead of us to reteach the idiocracy the old better way of consumerism.

gmj's picture

Poverty is an effective teacher.

Element's picture

The world is going to get a crash-course in living frugally, plus an unexpected philosophical tune-up (to cope with it all)

There used to be whole magazines devoted to frugality, and to raising the family accordingly, using things called "hand-me-downs" and sewing machines, because it was ESSENTIAL to know this stuff, and to have a culture that was very well educated in all that stuff.

Then as families became more affluent and credit-cards took over, those sorts of magazines and that practical-culture gradually gave way to fashion, make-up and extravagant foods, and the cult of personality, an over-rated sense of sexual deviance and sensation, plus the torrent of pervasive drivel from mercilessly spoilt and overly-protected wanton idiots who never once got any real-world lessons they really need.

Well, ... all that old-fashioned frugality stuff is coming back at us in a big way, and it's going to get very brutal when people realize they don't kow how to live anymore.

Escapeclaws's picture

Good post and a blast of fresh air from the past. People get used to being covered with slime and come to regard that as normal over time. Wake up call shortly.

css1971's picture

That doesn't work either. That just makes it collapse earlier.

Say it after me people:

Fractional Reserve Banking means there is always more debt than money. There will always be a bust.

gmj's picture

Sounds like a Monty Python quote.

Buck Johnson's picture

It's gallows humor, they have to "look confident" in order to not scare the markets.  But they are scared because that is just to much debt.  Also Britian is acting like Spain and Belgium a year and a half ago.  They where quiet and saying everything is okay but then one day they need help.

css1971's picture

The difference between the euro and the dollar and pound is simply that with the dollar and pound you can print to pump the next inflation cycle. With the euro, you need the agreement of all the countries first which makes this more difficult.

Inflate or collapse. That simple. Europeans are choosing collapse at the moment.

You want sanity, you need a new monetary system.

fajensen's picture

You can print with the EUR too:

1) You set up a liquidity facility with the ECB where banks can repo any kind of OTC dreck that they wish as security for 1% EUR loans.

2) The 1% EUR loans are immediately used to buy treasury bonds, yielding 2-3% thus funding deficit spending and enriching banks at the expense of taxpayers and society as a whole.

3) Never question the quality of the "assets" nor the volume of "assets" deposited as security for the new loans - bad for "confidence" that.

That was "Plan A".

Now it seems that "they" will go for "Plan B": Engineer* a blowup and use it for a massive power-grab with Bussels assuming dictatorial powers over all of the EU member states financing - "Plan A" was to buy time while the legislation was drafted. 

*) Not much to engineer - there is too much debt to carry anyway. 

Escapeclaws's picture

Wow! Keep contributing, you are a regular Christopher Hitchens.  American does not have the same rich vocabulary as English. We don't have words like "huffing chuffer" and have to resort to obscenities to say the same thing.  Thanks for the Englsih lesson. Your point is well-taken too.

Dugald's picture

Cracking up?, hard to tell if was a smirk or a simper, but cracking up...not....

Bloody writers.........!

FunkyMonkeyBoy's picture

F**k it, who cares. Futures green... even though the EUR is down against the USD... so much for it being a proxy for the equity markets.

maxmad's picture

or red... but who cares...

navy62802's picture

That's ok. The longer it stays green, the easier it is to prepare for what we all know is coming. If we ever switched into the yellow zone, there would be far less latitude. So we'll have freedom of movement until the system just stops one day.

broke433's picture

Futures are green because it's tracking the Asian markets, which are currently covering their shorts and chasing gains in from prior Europe and US. Market action in Europe today should determine the mood for this week.

Prairie Fire's picture

This is fantastic news! Bullish oil, short gold, long the US dollar!!! Silver is going to take a cruel fisting!

I'll bet all the economic news this week (housing,jobs) will beat expectations!

We're going full retard into retail jerk off heaven, why would you want to stunt the consumer with the harsh reality of numerical facts is beyond me. Be a team player!


i-dog's picture

No. The satire is of a much higher standard ... even approaching that of MDB (though still not good enough to reel in the record numbers of indignant responders that MDB can achieve ... all he caught was you)!

jtmo3's picture

Ah, this must be why the futures are going green. Silly me for thinking reality would win out.

Nate H's picture

ever wonder if those with different world views might perfectly expect futures to be green during this period ?  (you should)

Kayman's picture

Gallows humor.  Will Italy survive the drop thru the trap door ?  Sure, sure....ha ha....

ultimate warrior's picture

I think it is called nervous laughter.  From Wikipedia, "Nervous laughter is laughter evoked from an audience's expression of embarrassment, alarm, or confusion, rather than amusement."

Fish Gone Bad's picture

I was watching some old tapes from the Nixon days, the fall of the USSR, and The War on Terror.  Anytime anyone was smiling or laughing, you now know that they were lying/trying to cover something up, buying time or just trying to deflect the question.

I always thought of nervous laughter as a bit of an ice breaker.  Now?  It is just fucking creepy.

gmj's picture

Why are they laughing?  If their idiot bankers had said NO, none of this would have happened.  It takes two to tango.

i-dog's picture

I think the look on Merkel's face said to Snarko: "He's your buddy ... you answer it!"

slewie the pi-rat's picture

does it feel like 1909?

or is it just me?

FunkyMonkeyBoy's picture

Feels like plain old fashioned vanilla fascism to me.



"If you want a picture of the future, imagine a boot stamping on a human face — forever."

... that's what it feels like to me.

NoClueSneaker's picture

ditto ... for 31 years ...

I kick my can down the road. Nice is something else.


CrazyCooter's picture

Wow. I was not only shocked by your comment, but I was equally shocked because I didn't remember it from Orwell's book after I looked it up.

Such is the nature of us humans ...

Time to brush up!



WonderDawg's picture

You're the only one here who was alive in 1909 to know what it felt like. But if you say so. Aye.

CrazyCooter's picture

You're the only one here who was alive in 1909 to know what it felt like. But if you say so. Aye.

Oh, the irony of your comment. Do you even realize what you said and/or what it means?



WonderDawg's picture

Not really, Cooter, I was just fucking with Slewie. Why don't you explain to me the irony.

CrazyCooter's picture

Well, sorry then. My big hang up these days is how we (as a collective) learn these lessons and forget them only to pay the price all over again.

I don't tend to see the "literary colors" others do ... I got this literal thing and tend to see things more "dry" than the average guy. I never figure it out until its too late in a lot of cases.

Sucks trying to date, that is for sure ...



WonderDawg's picture

Yeah, Cooter, if you read The Fourth Turning it offers some explanations why we (as a collective) repeat the same mistakes. Elliott Wave Theory offers what I consider to be the best explanation for why history rhymes.

Crumbles's picture

Because Gene Krupa and Leo Fender were both born in 1909? Bleriot flew the Channel?
Oh, I know - the NAACP was founded in 1909.

NoClueSneaker's picture

Tele is an reference.

Me average fan of Leo.

Crumbles's picture

Telecaster OK but nothing like a Gibson Les Paul Studio [ :-}

Pretorian's picture

This is better , journalist during press conference ask Sarkozy "How do we know you are not lying this time" lol

IrritableBowels's picture

Guess I should brush up on my French...

CrazyCooter's picture

I really wish I learned Cajun French growing up ...