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Worldwide Markets Collapse Following Italian Bond Margin Hike

Tyler Durden's picture


The much dreaded LCH margin hike came and went and while initially the market participants thought it was just a joke as nothing bad is ever allowed to happen anymore in these neverneverland markets, a few hours later the realization that this is all too real has finally dawned. The result is an epic bloodbath everywhere, but nowhere more so than in Europe, where one can kiss Italian bonds goodbye, and shortly French too, as the bond vigilantes demand that the ECB print now or else. Visually this is presented as follows: a 30 point drop in the ES, an unseen collapse in Italian bonds, and an explosion in the French-Bund spread. And since nobody can demonize CDS any more, we expect Europe to make selling sovereign bonds illegal next.


BTPs price:

France-Bund spread:

Commentary from Bloomberg:

  • LCH Clearnet SA increased charge levied on clients to trade Italian government bonds {FIFW NSN LUE2U16S972B <go>}
  • With Berlusconi expected to resign after approval of austerity measures, market left to wonder whether new government can alter trajectory of debt crisis
  • Italian 10-yr spread to Germany +74bps to record 543bps, 2-yr spread +80bps to record 694bps
  • Spanish French yield to Germany spreads significantly wider; with 2- and 10-yr spreads for both countries at records
  • European equity bourses, U.S. futures all down significantly, 1.6% to 3.3%
  • German bond yields down modestly, 2-6bps, while Treasury yields down 0.1 to 10bps, with 10-yr testing below 2.0%
  • US$, yen outperforming significantly in generalized risk aversion

And some thoughts from RBS:

  • LCH’s increase in initial margin calls on Italian govt bonds will likely hit Italian banks the hardest, Adam Cole, strategist at RBC, writes in note.
  • Move will make using BTPs as collateral to raise cash in repo mkts more expensive
  • LCH’s move anticipated for some time though still sufficient to push spreads to record levels, outright yields to new highs
  • Berlusconi’s resignation diluted by lack of clarity
  • Possibilities range from technocrat govt (most mkt positive) to new elections (most negative)

Bottom line: it turns out that pushing back reality indefinitely always comes back to bite you in the ass eventually.


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Wed, 11/09/2011 - 08:08 | 1860042 GeneMarchbanks
GeneMarchbanks's picture

Long time comin'

Rome Riot Cam?

Wed, 11/09/2011 - 08:27 | 1860122 homersimpson
homersimpson's picture

It's days like these why I hold FAZ. Nothing like a good defense against fraudulent stock markets and crappy economic policies born out of desperation and stupidity.

Wed, 11/09/2011 - 08:32 | 1860136 paarsons
paarsons's picture

Good Citizens of Metropolis!

Look on the bright side.

At least we aren't getting hit by the commet!

And the price of dog food is going down.

We can still feed our families.

Wed, 11/09/2011 - 08:47 | 1860190 trav7777
trav7777's picture

Sovereigns are the new subprime

Wed, 11/09/2011 - 08:51 | 1860207 markmotive
markmotive's picture

The Chinese central bank is loading up on gold. Are you?


Wed, 11/09/2011 - 09:05 | 1860254 disabledvet
disabledvet's picture

this is good for war too...

Wed, 11/09/2011 - 09:05 | 1860255 Snidley Whipsnae
Snidley Whipsnae's picture

Yes... for the last 44 years... but I'm only a transitory gold buyer.

Wed, 11/09/2011 - 10:42 | 1860661 Calmyourself
Calmyourself's picture

Cain screws up the race card for bammy..

Wed, 11/09/2011 - 08:32 | 1860137 DaBernank
DaBernank's picture

Good for you, FAZ up ~8% in pre.

Wed, 11/09/2011 - 08:46 | 1860186 Quinvarius
Quinvarius's picture

Poor robo.  He thought banks were a momo trade yesterday.

Wed, 11/09/2011 - 08:52 | 1860210 Big Slick
Big Slick's picture


Wed, 11/09/2011 - 09:13 | 1860281 LoneCapitalist
LoneCapitalist's picture

2112 = Best album ever!

Wed, 11/09/2011 - 08:33 | 1860139 Cdad
Cdad's picture

Personally,  I sold BLK...and bought TZA last night at the close.

Remember Larry Fink's comments about a month ago:  "Make them buy equities."  I'm sure he was also in the crowd saying, "US exposure to European debt is manageable."  Uh huh.  Of course, just three days ago we had Reuters confirm that BLK had been buying Italian debt.

Larry Fink better hope that accounting does not come back into style any time soon.

Wed, 11/09/2011 - 09:11 | 1860273 MsCreant
MsCreant's picture

Counterparty Risk. 

Mother Fucking Global.

Good luck.

Wed, 11/09/2011 - 08:29 | 1860128 Cash_is_Trash
Cash_is_Trash's picture

Note to self: Bring motorcycle helmet to riot.

Wed, 11/09/2011 - 08:56 | 1860224 krispkritter
krispkritter's picture

Bread helmets for everyone!

And buy your peanut butter and jelly now while you can still afford it...

Wed, 11/09/2011 - 09:08 | 1860267 Cash_is_Trash
Cash_is_Trash's picture

Peanut butter and jelly padding!

Wed, 11/09/2011 - 08:38 | 1860165 slaughterer
slaughterer's picture

This decline will only be a one-day aberration.  Once the Italian bondholders clear up their margin hikes, and the world's leaders step in with their ingenious plans, the market will continue its rally into Christmas.  No need to worry.  BTFD. 

Wed, 11/09/2011 - 08:44 | 1860182 writingsonthewall
writingsonthewall's picture

I think you'll find the market is long on bullshit and short on suckers.


Please - go right in, your BTFD in Italian debt - I mean it's cheap - therefore it must be good value!!


Wed, 11/09/2011 - 08:45 | 1860045 Minoan
Minoan's picture



Wed, 11/09/2011 - 08:05 | 1860046 Alexmai
Wed, 11/09/2011 - 08:08 | 1860053 knight99
knight99's picture

sometimes the easiest trade can be the hardest trade. Eur 1.15 first target here's hoping. Now that Italy 10 yr has well passed the point of no return for thier bond yeilds 7% and no CDS to protect anyone buying it (making it an untouchable) we have two options print or default either one leads to a much much lower Euro. That being said will cover half my position on a close above 1.371 and will live to fight another day.

Wed, 11/09/2011 - 08:17 | 1860082 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

EUR to parity with the USD. It is even a more worthless piece of paper. The US can learn something. A populace run by corrupt bankers who allow their citizens to do nothing leads to nothing but bankruptcy.

Wed, 11/09/2011 - 09:10 | 1860271 GMadScientist
GMadScientist's picture

This is like one of those horrible limit problems from first year there anything we can cancel out between the two monotonically declining geometric series?


Wed, 11/09/2011 - 21:28 | 1864057 StychoKiller
StychoKiller's picture

Both series are being swamped by the large 'Stupidity' series involved...:>D

Wed, 11/09/2011 - 09:06 | 1860261 jdelano
jdelano's picture

agreed.  this trade has taken more resolve than any I've ever attempted.

Wed, 11/09/2011 - 08:22 | 1860097 Schmuck Raker
Schmuck Raker's picture

Is this a great f'n country, or what?

Wed, 11/09/2011 - 09:03 | 1860247 Snidley Whipsnae
Snidley Whipsnae's picture

Gave you a + Schmuck Raker... even though I am leaning toward the 'or what'. :)

Wed, 11/09/2011 - 08:26 | 1860114 chunga
chunga's picture

Ho! Ho! Ho!

Wed, 11/09/2011 - 21:27 | 1864052 StychoKiller
StychoKiller's picture


it turns out that pushing back reality indefinitely always comes back to bite you in the ass eventually. [/quote]

Translation:  Ayn Rand was right!

Wed, 11/09/2011 - 08:45 | 1860185 duo
duo's picture

One of the few bright spots in the Michigan economy (X-mas trees), and Obamao has to screw that up.

There should be a $10 tax on landfill-clogging Chinese-made plastic Christmas trees.

Wed, 11/09/2011 - 08:51 | 1860204 Bobbyrib
Bobbyrib's picture

A tax to promote Christmas trees? You can't make this shit up!


Chicago is one hell of a city. The only other place you could find corruption this bad is in NJ.

Wed, 11/09/2011 - 09:16 | 1860297 El Viejo
El Viejo's picture

You can't tax a religion unless of course words are spoken from the pulpit that politicians don't like. Sound Familiar? (Think prewar Germany)

Wed, 11/09/2011 - 09:17 | 1860302 CH1
CH1's picture

Sadly, that's not entirely true. New Orleans, for example.

And of course, Washington. The gang there still wears "constitution clothes," which covers some of their corruption, but the city oozes it.

Oceans of other people's money + nameless bureaucrats = incurable corruption.

Wed, 11/09/2011 - 09:06 | 1860260 Oleander
Oleander's picture


Wed, 11/09/2011 - 21:33 | 1864082 StychoKiller
StychoKiller's picture

Which reminds me -- time to put the XMas lights up outside on the spruce tree.  What a barbaric waste of tree sap to cut down a tree and drag it into yer house -- why not just get some pine-scent air spray, and an artificial tree  instead?

Wed, 11/09/2011 - 08:06 | 1860047 Oh regional Indian
Oh regional Indian's picture

There you go. 6% is now history. 7% is now taken. All these NUMBers. NUMBers. Still, Italy is safe. Very safe. Vatican back-stop safe. 

What is happening to Spanish Debt? Is Santander sweating?

Europe will finally slide on Spain.


Paying Attention

Wed, 11/09/2011 - 08:09 | 1860057 Raskolnikoff
Raskolnikoff's picture

what does the Vatican have to do with modern history? What do your brains have in common with your opinion...? these questions have the same answer.

Wed, 11/09/2011 - 08:13 | 1860073 Oh regional Indian
Oh regional Indian's picture

Well Rasko, from your comment, you sound like you would bleat when you speak.

Bleat, get it? Keep believing your sanitized version of history. It will, like the last line of thsi article, come and bite you in the ass.

Do a little Google search: Vatican Broken Cross for starters. Or don't. You sound like a conformist.


Wed, 11/09/2011 - 08:49 | 1860196 trav7777
trav7777's picture

as opposed to your secret (made up) history that has no connection to anything that ever really happened?

There was a time when the Pope raised armies and fought wars on his own dime.  That time has long passed.

Wed, 11/09/2011 - 08:52 | 1860209 Oh regional Indian
Oh regional Indian's picture

Trav, when you've finished about 5 books on the topic, get back to me. 

There is real history and there is consensus, victor written history.


Wed, 11/09/2011 - 09:55 | 1860473 mick_richfield
mick_richfield's picture

What books would you recommend, ORI? 

How about your top 5 on this topic?

Wed, 11/09/2011 - 18:30 | 1863402 Oh regional Indian
Oh regional Indian's picture

How about starting with one....

And here :

If you can wrap yoru head around them....then....many many more. But only if you were serious.


Wed, 11/09/2011 - 21:40 | 1864110 StychoKiller
StychoKiller's picture

I'm of the opinion that the age of kali will end in 2012, what do you think?

Wed, 11/09/2011 - 08:19 | 1860083 LeBalance
LeBalance's picture

The Roman (empire, Darth Vader, Emperor Palatine, etc) have Nothing to do with so-called modern history.

Don't look at the laurel wreath borber on the UN seal or any of the gazillion other places it is.  Don't let the symbolism harm your preconception of who runs this joint.


Reality is threatening.

Wed, 11/09/2011 - 09:15 | 1860294 GMadScientist
GMadScientist's picture

I've always been bugged by the fasces on the back of FDR dimes.

"From many, one" indeed...(as in, "and then there were...").

Wed, 11/09/2011 - 09:20 | 1860310 CH1
CH1's picture

Yes. Walk around Congress (also many monuments of DC) and you'll be much more bugged. Looks like freekin Rome.

Wed, 11/09/2011 - 09:54 | 1860468 RiverRoad
RiverRoad's picture

And how about "In God We Trust" on the back of the dollar bill of all places?!

Wed, 11/09/2011 - 08:33 | 1860142 my puppy for prez
my puppy for prez's picture

You obviously have NO idea what the Vatican is ALWAYS AND FOREVER up to!  It doesn't involve "sacraments", and it is NOT good!

Wed, 11/09/2011 - 08:50 | 1860203 trav7777
trav7777's picture

it's nothing but a big collection of child molestors.

You morons have been reading too much Da Vinci code bullshit and watching tribe-authored movies that ALWAYS place the catholics at the the epicenter of every sinister conspiracy.  This stuff is really projection.

Wed, 11/09/2011 - 08:55 | 1860222 Big Slick
Big Slick's picture

Was gonna defend you, Trav.  Until you brought my priest into this.

Wed, 11/09/2011 - 10:57 | 1860724 Calmyourself
Calmyourself's picture

Let em go..  Takes the heat of the evil joooo zionists for a few minutes , right trav..

Wed, 11/09/2011 - 08:06 | 1860048 qussl3
qussl3's picture

Need more slosh.

If halving the leverage can cause this, LONG WAY DOWN, when the real shit hits.

Wed, 11/09/2011 - 08:08 | 1860050 5-4-3-2-1-1-2-3...
5-4-3-2-1-1-2-3-3-2-1---0's picture

Somebody will resign (Greek agriculture minister) and market's going to soar

Wed, 11/09/2011 - 08:09 | 1860051 Banksters
Banksters's picture


Wed, 11/09/2011 - 08:31 | 1860133 JesusUp
JesusUp's picture

more numbers, more numbers

goin' long numbers


Wed, 11/09/2011 - 08:08 | 1860052 nmewn
nmewn's picture

Clearly, this calls for a US Emergency Broadcast Test around 2PM today to steady the markets ;-)

Wed, 11/09/2011 - 08:24 | 1860102 Snidley Whipsnae
Snidley Whipsnae's picture

hehehe... nmewn... If ECB is going to print, make that PRINT, how much more will Ben print to weaken the dollar against the Euro?

Or, is the POTUS plan to 'double exports within five years' now on the back burner? Or, was the POTUS plan all bs from jump street?

My opinion... POTUS plan bs from jump street.

If all the digital debt in the world were converted to $20 bills we would all need 4 wheel drives cause the entire land mass would be ass deep in them. :)

Wed, 11/09/2011 - 08:28 | 1860123 nmewn
nmewn's picture

lol...I'm off to watch this new digital train wreck from work...gotta stop and get more poporn though.

Take care.

Wed, 11/09/2011 - 08:52 | 1860211 trav7777
trav7777's picture

the potus "plan"???  It was just some shit that he pulled out of his black ass that sounded good.  There is no fucking plan.  How the fuck is the president going to double exports, does he fucking run factories and businesses and shit?

The idiots of this nation have invested the president with magical powers in their name

Wed, 11/09/2011 - 09:23 | 1860321 CH1
CH1's picture

The idiots of this nation have invested the president with magical powers in their name

Hey, it's still a lot better for them than facing reality!

Gonna be a bitch when the self-delusion stops working.

Wed, 11/09/2011 - 08:35 | 1860152 my puppy for prez
my puppy for prez's picture

They've been "practicing" all night!  Others up in the wee hours verified what I experienced at 5 am.  

They are obviously nervous they will not push the right button!

EAS:  Everybody Absolutely Screwed

Wed, 11/09/2011 - 08:08 | 1860054 Peter K
Peter K's picture

"Berlusconi’s resignation diluted by lack of clarity".

Bullshit. The idiots (MSM and Analyst community) pushed Silvio over the cliff in the HOPES that this is what the real money was focusing on.

This morning it turns out that they were WRONG.

Any clear thinking reality based human being could have told them that. It's just that simple.

Wed, 11/09/2011 - 08:15 | 1860078 Global Hunter
Global Hunter's picture

CNN was running a headline at the bottom of the screen that Berlusconi had resigned as Italian PM this morning.  

Wed, 11/09/2011 - 08:28 | 1860124 Ghordius
Ghordius's picture

he promised to resign

if the austerity package goes trough

now he has an incentive to be very fast in "ramming through" a "very popular" austerity package

of course he'll be fast, what politician wants to be seen reneging promises?

particularly when the promises depend on a couple of hundred other politicians?

Wed, 11/09/2011 - 08:53 | 1860212 Bobbyrib
Bobbyrib's picture

of course he'll be fast, what politician wants to be seen reneging promises?

particularly when the promises depend on a couple of hundred other politicians?

As a former Obama supporter allow me to answer that with "Obama."

Wed, 11/09/2011 - 08:17 | 1860081 SWRichmond
SWRichmond's picture

Are the markets finally figuring it out?  Is the obfuscation finally being ignored as irrelevant?


Wed, 11/09/2011 - 08:26 | 1860116 Snidley Whipsnae
Snidley Whipsnae's picture

It's still a train wreck... it's just happening in slow motion... but, it's still happening fast when measured in geologic time.

Wed, 11/09/2011 - 08:29 | 1860125 Peter K
Peter K's picture

Big Panda and Big Bear still have some of the superlicious EuroBamboo to ship it. Personally, I think that their cage is full, but one never ever knows. Hint, watch the EUR/CHF. If they start heading for the door, it will be this exit :)

Wed, 11/09/2011 - 08:35 | 1860153 HoofHearted
HoofHearted's picture

I'd be surprised if it wasn't commodities. They're getting burned by the Euro, have already been burned by the USD, so why would they take a chance on someone already debasing? Soon others will realize the "safety" of bonds in pure BS. And at that point everyone is going to look for something, anything with no counterparty risk. Most of us are holding onto that stuff like a fat kid holds onto his Halloween bucket.

Wed, 11/09/2011 - 09:54 | 1860466 Bicycle Repairman
Bicycle Repairman's picture

unnecessarily slow dipping mechanism.....

Wed, 11/09/2011 - 08:33 | 1860140 JesusUp
JesusUp's picture

one ring to rule them all

Mario Dracul

Wed, 11/09/2011 - 08:58 | 1860230 trav7777
trav7777's picture

was he the one that signed those swaps with GS?

Am I the only one who remembers those?  The rate and other swaps Italy had the Street manufacture to bring their deficits "under target" upon EU accession but which blew out their deficits about

Italy is a nuclear timebomb.  It was big news when it was disclosed and I guess they thought that shuffling some chairs in the government would make it all go away

Wed, 11/09/2011 - 08:09 | 1860055 johngaltfla
johngaltfla's picture

It's only going to get worse. If anyone in their right mind thinks Spain is not going to follow Italy down the rathole they are lying or nuts. Start watching the yields on bonds for the banksters in Autria and France for a clue as to how quick this will implode.

Wed, 11/09/2011 - 08:09 | 1860058 vegas
vegas's picture

And once they enforce no selling evaaaaaah in sovereign bonds, the next step is forced buying from your paycheck don't-ya-know of sovereign bonds. Easy payroll deduction for the cause. You want to support the cause don't you?


Wed, 11/09/2011 - 08:13 | 1860072 Quintus
Quintus's picture

They'll just force all pension funds into Sovereign bonds.  Much easier than a payroll deduction and much quicker too.

And people talk about Gold confiscation.  Ha.

Wed, 11/09/2011 - 08:25 | 1860111 GoldBricker
GoldBricker's picture

A lot of digits in pension funds, yes. But where are those digits? Stocks, corporate/muni bonds, REITS. Move those funds into USTs and crash the other markets, precisely the thing that TPTB are pulling out the stops to avoid.

Wed, 11/09/2011 - 08:32 | 1860138 Quintus
Quintus's picture

I think Ben would personally shoot the SPX in the head if it were a choice between continuing to levitate stocks and funding the Treasury's ever-increasing bond sales.

At the moment, he can do both, but when the time comes to choose, only the Treasury market really matters.

What use is S&P 5000 when the government can't afford to keep the lights on?

Wed, 11/09/2011 - 08:52 | 1860208 SWRichmond
SWRichmond's picture

They will do everything we can imagine as well as lots of things we can't.

Wed, 11/09/2011 - 09:09 | 1860268 GoldBricker
GoldBricker's picture

Why take it from the pensions when you can print? Why pop the balloon when you can deflate it slowly? Slow siphoning is the name of the game here; that's what has kept the Fed in the game for a century.

If BB can print more cake whenever he wants, he can have his cake and eat it too. SPX, USTs, MBSs, you name it. Everything but the barbarous relic.

Wed, 11/09/2011 - 11:38 | 1860890 Calmyourself
Calmyourself's picture

Which is why I sound like a broken record, I am tired of hearing it...  This will take years Denninger and all the rest are wrong, hunger and only hunger will trigger this and by that time they will have asset stripped us completely.

Wed, 11/09/2011 - 08:35 | 1860147 Snidley Whipsnae
Snidley Whipsnae's picture

Interesting read from Bill Bonner re the Italian economy... It's a point of honor among Italians to avoid paying taxes. Most transactions in cash... so not reflected in GDP... etc...

The Italians (Romans) have seen a lot of bs tax collectors/laws in their time. Who knows Italian history better than Italians? They are doing what Americans should be doing. Pay in cash, avoid banks that pay zippo interest on savings.

At one point the Roman Empire made it illegal for Romans to renounce their citizenship to avoid confiscatory taxes. Wage and price controls were tried long ago. Modern Italians know how their taxes are wasted and have been wasted for a couple of thousand years.

Wed, 11/09/2011 - 08:49 | 1860200 chubbar
chubbar's picture

And now you know why forfeiture laws were pushed through making it a crime to carry any "suspicious" amount of cash (which can be any amount). They even give most or all of it to the arresting officials department just so they have a dog in the hunt. They are desparately trying to get us to a cashless society and will discourage cash transactions to the maximum extent possible.

Wed, 11/09/2011 - 08:50 | 1860201 darkpool2
darkpool2's picture

Unpatriotic ! You Americans know wheres the fucking flag....time to wave it around a bit dont you think. ????

Wed, 11/09/2011 - 08:58 | 1860229 Snidley Whipsnae
Snidley Whipsnae's picture

LOl... Yeah, they have been waving it for as long as I can remember and I am no spring chicken.

Whats that old saw about 'The Last Resort of a Despot Is Wrapping Self In Flag'... or something like that.

Wed, 11/09/2011 - 22:35 | 1864260 StychoKiller
StychoKiller's picture

"Patriotism is the last refuge of a scoundrel!"  De nada :>D

Wed, 11/09/2011 - 08:10 | 1860059 sumo
sumo's picture

Will the next MF Global-style wipeout candidate please stand up.

Wed, 11/09/2011 - 08:30 | 1860130 slaughterer
slaughterer's picture

Next MF wipe out list has been known for a while my friend:

1.) MS

2.) JEF

3.) BLK

4.) GS

(I leave out the EURO candidates--they are obvious). 

Wed, 11/09/2011 - 08:41 | 1860175 Snidley Whipsnae
Snidley Whipsnae's picture

"Will the next MF Global-style wipeout candidate please stand up."

1) All institutions that are using huge leverage to pay huge bonuses to bankers.

2) All institutions that are using huge leverage to pay retirees benefits.

3) All institutions that are using huge leverage to pay endowments.

4) All soverigns that have allowed privitization of profits and socilaization of losses of money center banks, insurance companies, REITS, etc...

... in no particular order ...

Wed, 11/09/2011 - 08:10 | 1860060 foofoojin
foofoojin's picture

can someone turn this into number of standard deviation from the norm. or would it be infinity?

Wed, 11/09/2011 - 08:10 | 1860063 Mitch Comestein
Mitch Comestein's picture

Boom goes the dinomite!

Wed, 11/09/2011 - 08:10 | 1860064 westboundnup
westboundnup's picture

I predict a stick save in the offing.

Wed, 11/09/2011 - 08:12 | 1860068 pmcgoohan
pmcgoohan's picture

The Guardian is reporting that the ECB is already buying bonds, but that it is having no effect. Dont know where they are getting their information from

Wed, 11/09/2011 - 08:34 | 1860144 HD
HD's picture

If that turns out to be true I will laugh my ass off.

Wed, 11/09/2011 - 08:34 | 1860145 westboundnup
westboundnup's picture

Already establishing a floor.  Dow futures rising.  Never underestimate the power of the leg that kicks the can down the road.

Wed, 11/09/2011 - 09:15 | 1860295 tarsubil
tarsubil's picture

Yeah, the boot they are using must be ginormous.

Wed, 11/09/2011 - 09:28 | 1860340 CH1
CH1's picture

I predict a stick save in the offing.

Actually, it will be a rule change: If the stick (or anything else pertaining to the goalie) touches the puck at any time, it shall be considered a save, whether the puck enters the net or not.

Problem solved!

Wed, 11/09/2011 - 08:30 | 1860065 GoldBricker
GoldBricker's picture

Berlusconi’s resignation diluted by lack of clarity

So what is clear these days? My bazooka is bigger than yours? The object is to muddy the waters.

Everybody dumps on Silvio, but he's by far the longest-serving prime minister of the postwar era (typical tenure for Italian PMs has been about 10 months). Does anybody think that another face is going to provide clarity? Romano Prodi tried after coming back from Brussels and did a face plant.

Not long from now, Italians will look back on the Berlusconi era as the good old days, where there was (relative) clarity.

Wed, 11/09/2011 - 08:36 | 1860157 Ghordius
Ghordius's picture

GoldBricker, I'm shocked! s h o c k e d !

don't you know that a politician's private life is important? particularly because it's the only part the MSM and other geniuses can understand?

Government has to be run by politicians that spend trillions to save the day and then make heroic savings of hundred of billions

the funny thing is that the Italian Left is a bit scared at the moment of going too early into elections, they would prefer to have a technical gov as long as possible...


Wed, 11/09/2011 - 09:20 | 1860299 GoldBricker
GoldBricker's picture

If a politician's private life is important, then I for one will miss Silvio. At least he was upfront about liking young women. Not like the US, where a 10- or 20-year old claim that you put your hand on someone's leg is considered a big thing.


Wed, 11/09/2011 - 08:12 | 1860066 Banksters
Banksters's picture

(Reuters) - Political leaders were scrambling unsuccessfully on Wednesday to find a new prime minister to lead Greece back from the brink of bankruptcy, after a plan to name a former central banker ran into trouble.

Berlusconi is looking for work!


Wed, 11/09/2011 - 08:24 | 1860107 cossack55
cossack55's picture

I'm shocked squidscum L-Pap was seen naked. I guess the greeks want a JPM scum instead.

Wed, 11/09/2011 - 08:12 | 1860067 Non Passaran
Non Passaran's picture


I think this is the end of the recent BS rebound as far as CY2011 is concerned. How many folks will dare to stay long thru holidays?

Wed, 11/09/2011 - 08:13 | 1860069 Joeprimo55
Joeprimo55's picture

Domino 1 falling? Bullish? T I M B E R...

Wed, 11/09/2011 - 08:35 | 1860149 JesusUp
JesusUp's picture

long timber


Wed, 11/09/2011 - 08:13 | 1860070 youngman
youngman's picture

Well I think BungaBunga man got out at just the right now we have some more meeetings....or do we print Deutch marks....and Greece...what happened to them.....they just lost the barrel they were holding everyone over....and Spain is slowly add in the world economy...things are slowing...its not looking good....the status quo will not allow change....but we need a paradeigm shift (shit) gold

Wed, 11/09/2011 - 08:47 | 1860187 Snidley Whipsnae
Snidley Whipsnae's picture

"and Greece...what happened to them.....they just lost the barrel they were holding everyone over"

ummm... no, Greece is now using the barrel to cover their sensitive parts... Greece is wearing the barrel cause it's all they have left.

Do you remember the old cartoon ... man seen leaving Lost Wages wearing a barrel? :)

Wed, 11/09/2011 - 08:13 | 1860071 Global Hunter
Global Hunter's picture

One of these mornings I put CNBC on to see what they're saying, the reporter in Italy tried to say that the margin hike is out of the LCH Paris office not the London one so its no biggy.  PPT going to be working hard this morning.

Wed, 11/09/2011 - 08:14 | 1860074 loftgroovv
loftgroovv's picture

Markets "collapse" is a bit of an exaggeration.

Wed, 11/09/2011 - 08:20 | 1860085 GoldBricker
GoldBricker's picture

ZH is selling the sizzle, not the steak.

Wed, 11/09/2011 - 08:23 | 1860094 trampstamp
trampstamp's picture

Oh? How about markets spring back? Will that make you happy and not be considered exaggeration?

Wed, 11/09/2011 - 08:23 | 1860098 gatorengineer
gatorengineer's picture

Couldnt agree more, futures rising right now Merkel talked them up 100, so we gave back yesterdays Hopium fueled gains....  So What

Wed, 11/09/2011 - 08:50 | 1860202 Snidley Whipsnae
Snidley Whipsnae's picture

Good luck with SC and the Ol Ball Coach.

Wed, 11/09/2011 - 08:27 | 1860120 Global Hunter
Global Hunter's picture

I agree that we should never under estimate the power they have to keep it propped up, it could go on for days, weeks or months but when it comes make sure your helmet is buckled up nice and tight

Wed, 11/09/2011 - 09:13 | 1860282 disabledvet
disabledvet's picture

"collapse of Italian bond market" would be more accurate.

Wed, 11/09/2011 - 08:15 | 1860076 RichyRoo
RichyRoo's picture


Story from Bloomberg about banksters dodging increased capital ratios by, you guessed it, mark to unicorn:

“By allowing sophisticated banks to do their own modeling, we are allowing the poacher to participate in being the game- keeper,” said Adrian Blundell-Wignall, deputy director of the Organization for Economic Cooperation and Development’s financial and enterprise affairs division in Paris. “That risks making core capital ratios useless.”

Wed, 11/09/2011 - 08:37 | 1860164 HD
HD's picture

Ridiculous. I let the fox run my hen house and everything is just fin...hey, where the hell are my chickens?

Wed, 11/09/2011 - 09:14 | 1860290 disabledvet
disabledvet's picture

"i cannot corrupt you unless you allow me to profit from it."

Wed, 11/09/2011 - 08:17 | 1860079 Never1
Never1's picture

I went long TVIX last night and added to my TZA and FAZ positions.  This morning is a nice morning.

The overlapping action on all the major indices the past few days is classic topping behaviour. Anyone half schooled in technical analysis could see that we were running out of steam. I'm a big Elliot Wave follower and it really is true that the emotional behaviour of traders creates very specific patterns. I've been anticipating a morning like this for a few weeks now.... Headlines be damned, the technicals don't lie.


Gotta keep an eye on Crude prices.... the only bullish wildcard right now.

I wonder what they'll come up wth to get this one turned around?

Wed, 11/09/2011 - 08:16 | 1860080 circusoflife
circusoflife's picture

and the logic of LEFT-BRAIN dominant folks still have trouble thinking 2012 may in fact mean something....


the fallacy of logic....


How many economic & natural disaster, man-made disasters must happen all at one time?  Let alone certain scientific discoveries, world event "coincidences," and other phenomenon....


...a lot more I reckon until we reach total capitulation...


It's not called IGNORE-ance for nothing I suppose.  I-GNOre --> "I" KNOWer, not "WE" KNOWER.


GNOssis = KNOWledge in Greek.  Waiting for the CULT of I to implode.

Wed, 11/09/2011 - 08:38 | 1860146 TheAnarchist
TheAnarchist's picture

I'm with you man (or woman), everything in "time".  Pass the popcorn...

Wed, 11/09/2011 - 09:37 | 1860383 circusoflife
circusoflife's picture

In the won't even shall be obvious who WHEEEE are. Don't need words or titles (man/woman, etc..) to define the more labels... my username...1st link on Google I think...a perpetual work in progress (Until the time to stop writing is at hand)...but maybe insightful...

Wed, 11/09/2011 - 08:43 | 1860178 my puppy for prez
my puppy for prez's picture

True.  Few realize the significance of astronomy and galactic cycles.  Nature is a bitch sometimes!

2012 will be an "interesting" year, most definitley, in countless ways....

And I am not even a "cosmic convergence" type....but cycles are cycles, and we are about to find ourselves at the end of one soon....a la extremely seldom planetary alignments and eclipses.  

Wed, 11/09/2011 - 08:20 | 1860087 Zola
Zola's picture

From Wikipedia : "In the days leading up to the crash the market was severely unstable. Periods of selling and high volumes of trading were interspersed with brief periods of rising prices and recovery. Economist and author Jude Wanniski later correlated these swings with the prospects for passage of the Smoot–Hawley Tariff Act, which was then being debated in Congress.[7]

On October 24 ("Black Thursday"), the market lost 11% of its value at the opening bell on very heavy trading. Several leading Wall Street bankersmet to find a solution to the panic and chaos on the trading floor.[8] The meeting included Thomas W. Lamont, acting head of Morgan BankAlbert Wiggin, head of the Chase National Bank; and Charles E. Mitchell, president of the National City Bank of New York. They chose Richard Whitney, vice president of the Exchange, to act on their behalf. With the bankers' financial resources behind him, Whitney placed a bid to purchase a large block of shares in U.S. Steel at a price well above the current market. As traders watched, Whitney then placed similar bids on other "blue chip" stocks. This tactic was similar to one that ended the Panic of 1907. It succeeded in halting the slide. The Dow Jones Industrial Average recovered, closing with it down only 6.38 points for the day; however, unlike 1907, the respite was only temporary.

The trading floor of the New York Stock Exchange in 1930, just six months after the crash of 1929

Over the weekend, the events were covered by the newspapers across the United States. On October 28, "Black Monday",[9] more investors decided to get out of the market, and the slide continued with a record loss in the Dow for the day of 38 points, or 13%. The next day, "Black Tuesday", October 29, 1929, about 16 million shares were traded, and the Dow lost an additional 30 points, or 12%.[10][11][12] The volume on stocks traded on October 29, 1929 was a record that was not broken for nearly 40 years"

Wed, 11/09/2011 - 08:20 | 1860091 kreskin
kreskin's picture

I wonder what the rate of perforated ulcers is per 100 mutual fund managers?

Wed, 11/09/2011 - 08:21 | 1860095 M.B. Drapier
M.B. Drapier's picture

the bond vigilantes demand that the ECB print now or else

Or Ben could blink first, maybe?

Wed, 11/09/2011 - 08:25 | 1860108 gatorengineer
gatorengineer's picture

Helicopter been on the way.... Unicorns got a double ration last night mint flavored skittles will be pouring out shortly..


In short  BTFD.....

Wed, 11/09/2011 - 08:26 | 1860112 Anne Ominous
Anne Ominous's picture

DOOM... Bitchez!

Wed, 11/09/2011 - 08:26 | 1860115 kaiten
kaiten's picture

Eurobond, anyone? Either that or ECB joins the printing orgy.

Wed, 11/09/2011 - 08:32 | 1860135 bob_dabolina
bob_dabolina's picture

....or US taxpayers bail them out


Wed, 11/09/2011 - 08:36 | 1860158 kaiten
kaiten's picture

When did us taxpayer bail out eurozone? I cant remember.

Wed, 11/09/2011 - 08:44 | 1860180 Global Hunter
Global Hunter's picture

1946 until the day after the last US base is closed on the continent.  I'm not a big fan of the US just pointing out the fact that European "defence" and "sovereignty" have been paid for by the US taxpayer for 65 years.

Wed, 11/09/2011 - 09:09 | 1860244 kaiten
kaiten's picture

Are you kidding? Was the Soviet Union solely the enemy of (western) Europe? SU was the enemy of both (western) Europe and US. Should SU conquered the whole of Europe, US would have lost the cold war. Pure and simple. And up until SU break-up NATO financing was fifty-fifty, half US, half Europe. So, go somewhere with your "US financing Europe´s defence", you were financing the "defence and sovereignty" of your asses, first and foremost. I love the american ability to depict their national interest as a national interest of someone else(this time Europe´s), you are masters in this "art". And that your boys are still here is just your choice, no one else´s. I dont know a single european who wants them here, so you are free to leave anytime you wish.

Wed, 11/09/2011 - 09:47 | 1860437 DaBernank
DaBernank's picture

As an Austrian, I certainly don't think there should be US troops in Europe anymore but after decades of them being there, talk of US troops leaving Germany leads to pleas from local German politicians for them to stay because of how much money they bring in to the local economy. Ask someone who runs a Wurstelstand near Rammstein airbase and you might find some Europeans who want them to stay. Then there was the Fed bailing out European banks in 2008...

Wed, 11/09/2011 - 11:47 | 1860921 kaiten
kaiten's picture

You said it - the FED, not the US taxpayer. And FED was only bailing out its bankster buddies, regardless of nationality, and certainly not the eurozone.


And as for US troops in Europe, well, as we live in democracy the opinion of majority prevails and majority of europeans dont want the us troops to be here, regardless of few local majors/people who have a very personal(and material) reason to support them.

Wed, 11/09/2011 - 08:46 | 1860181 NuYawkFrankie
NuYawkFrankie's picture

I'm afraid that that mythical dispenser of largesse-of-last-resort - the  US Taxpayer - is incapable of paying its own daily expenses - let alone bailing-out anyone/anything else.....

Wed, 11/09/2011 - 08:34 | 1860143 wang (not verified)
wang's picture

Time for the MSM to start recycling old headlines

 G-Pap to resign

Berlusconi agrees to step down

A new and stronger Europe is within our grasp




Wed, 11/09/2011 - 09:03 | 1860250 Roy T
Roy T's picture

Or my personal favorite, we have a plan for a plan.

Wed, 11/09/2011 - 08:36 | 1860159 firstdivision
firstdivision's picture

QE3 at 2:15pm



Wed, 11/09/2011 - 08:37 | 1860162 css1971
css1971's picture

oooohhhh that looks bad.



Wed, 11/09/2011 - 08:38 | 1860169 gatorengineer
gatorengineer's picture

Time for prayer.......


Our Ben who art in Washington

Hallowed be thy Game

Barry's kingdom has come

Thy will be done

In stocks as it is in bonds

Give bankers their daily Bread

Foregive us our shorts 

as we forgive those who have gone long against us.

Lead us not into CDS redemption

but deliver us from EU nations

For Goldman is the kingdom the power and the glory forever



Wed, 11/09/2011 - 09:13 | 1860278 neevarp
neevarp's picture

LOL mate..good one :)

Wed, 11/09/2011 - 14:25 | 1861777 akak
akak's picture

Hail Barry, full of disgrace

The Lord Bernanke is with thee

Cursed art thou amongst puppets, and cursed is the fruit of thy doom, Obamacare.

Unholy Barry, brother of Zod

Laugh at us taxpayers, now and at the hour of our impending financial death.  Amen.

Wed, 11/09/2011 - 08:38 | 1860171 darkpool2
darkpool2's picture

So, will gold trading, holding, discussing banned before or after the ECB starts printing? Would make sense to do it beforehand, god knows you dont want the people to get a wiff of price discovery regarding their " wealth"

Wed, 11/09/2011 - 08:39 | 1860173 traditionalfunds
traditionalfunds's picture

Collapse is a strong word. This fall can be reversed with a rumor of a rumor of QE3 & subsequent reporting of said rumor as "news." For it to be a collapse we'll need to see significant support levels broken on a sustained basis for multiple days.

Dive, nosedive, decline, or fall sharply are more appropriate during a time when 3% index moves are commonplace.

Wed, 11/09/2011 - 09:50 | 1860450 DaBernank
DaBernank's picture

Please someone take the gold price down again, I've got a stack of Euros that need converting! Help me JPM, you're my only hope.

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