Skip to comments.THE RALLY COLLAPSES IN EUROPE: Stocks Slide, Italian Yields Shoot Back Above 7%
Posted on 11/24/2011 7:44:06 AM PST by blam
THE RALLY COLLAPSES IN EUROPE: Stocks Slide, Italian Yields Shoot Back Above 7%
Nov. 24, 2011, 9:29 AM
Tower of Pisa
It looked initially like today might be quiet in Europe, a merficul gift to those of us in the US who were hoping for a quiet Thankgiving.
In fact, there was a pretty solid rally across the board, with yields down and stocks much higher.
But all that's changed. At a press conference with Nicolas Sarkozy, Angela Merkel, and Mario Monti, talk of an unlimited ECB bailout for all of Europe was downplayed.
Since then markets have turned south.
Italy's FTSE MIB index is now off 1%. The yield on the Italian 10-year is now back abov 7%.
Here's a look at the intraday behavior of the Italian market, which basically tells you everything you need to know.
(Excerpt) Read more at businessinsider.com ...
They are off by less than 1/2 of one percent. I guess Joe should change his name to “Chicken Little.”
People are hoping that the U.S. can escape the consequences, but thats a fantasy. A bank run across Europe will quickly devastate the economies of the U.S. and China and the Mideast and, even worse, will lead to conflict and war.
This is 100% certain, and no politician can prevent it. You cant stop whats coming, but you can prepare for it. Treasure the time you have left, and use it to prepare yourself, your family, your community, and your nation.
Thanksgiving day is a good day to start.
The Game Is About Done
“The news from Europe was very bad on Wednesday.”
Don’t worry. No matter what happens, the sun will rise tomorrow.
Socialism fails when they run out of other peoples’ money and that’s what is happening.
The biggest thing that has happened over the last few weeks in Europe is the total destruction of the underpinnings of the financial system.
No financial system, public or private, based on any form of wealth transfer using money, trade goods, or labor can survive when the players run the risk of a 50% loss of value when someone not immediately involved with the financial transactions decides its necessary.
The “solution” to the Greek financial market was created outside Greece - in Germany and Brussels. The solution was the investors in the Greek markets got their choice of three programs - all of which cost them half of their investments and required them to stay in the markets. Can anyone reading this post offer me any assurance that there will not be future "haircuts"? Fifty per cent lost this year and 100% loss when? A year ago the Greek investors could leave the Greek bond markets with at least their shirts. Now they must stay until they are nude (totally broke)!
What makes you think this “Greek Haircut” will not be applied to the other P.I.I.G.S financial system?
It is this fear that will doom the ECB system. And this is why I think yesterday's minor market losses are the first few inches in the hold of Europe's financial ship.
Do not worry, war is coming and that will save us all...sarc’
I thought they would be able to kick the can a bit longer, but now I expect a wipeout before 2012. It is still somewhat amazing to me how quickly expected misfortunes can accelerate. Here's a interesting snippet from a World Socialist Web Site article:
"The potential disintegration of the eurozone, regarded as a fringe possibility just weeks ago, is now actively being considered by banks and major investors."
People are hoping that the U.S. can escape the consequences, but thats a fantasy."
[snippet] Another "Too big to fail" moment coming up? A 60% jump in one month?
"Concerns about banks were not confined to the eurozone. The cost of protecting debt issued by Bank of America grew to record levels Wednesday amid concerns over its exposure to European bank debt. Credit default swaps on Bank of America rose to 495 basis points, up from 300 basis points in October and significantly higher than the previous daily record. The cost of protecting debt issued by European banks surged even higher."
The Full article is HERE. If you shrug off their turgid "capitalism is dying (again)" spin in most articles, a lot of them are interesting reads - especially about the rest of the world.
This is 100% certain, and no politician can prevent it.
The Chinese "interesting times" scenario is going to blindside both pols and a lot of sheep. Your advice is timely.
But a cornered animal is very dangerous, and they are cornered.