Monday, July 11, 2011

Another Week, Another Emergency European Meeting - This Time Target is Italy

Looks like we've skipped over Spain and headed straight to Italy for the never ending "it's a crisis until we hand people in debt with more debt, so that German and French banks never lose a dime".  Not sure why something that has been simmering for months on end, suddenly matters in the past few days but that's the issue when you never truly take care of a problem and simply kick the can(s) in every direction.

To solve the problem of too much debt, Italy has declared short sellers must be watched ever closer! (taking a page from the U.S. book circa 2008)  Because short sellers are of course is the nexus of all the world's ills.

I'm just waiting for someone to notice France has a massive debt load itself... and its supposed to be the one bailing everyone else out.

Via AP
  • Europe's finance ministers are meeting in Brussels today to seek ways to shore up Greece and defend the region’s other heavily indebted nations. The premium investors demand to hold Italy’s debt over German bunds hit a euro-era high of 267 basis points today
  • ....the yield on Italian 10-year bonds meanwhile increased to 5.4 percent from 5.3 percent, following sharp rises on Thursday and Friday.  "The fact that contagion is spreading marks the failure of politicians to draw a line under the Euro-crisis to date," Rabobank analyst Jane Foley said. "As yields rise and debt financing costs become even more exaggerated the difficulties of containing the crisis become even bigger."

Via Bloomberg:
  • Italy’s market regulator moved to curb short selling after the country’s benchmark stock index fell the most in almost five months and bonds tumbled on investor concern the nation may be the next crisis victim. Consob ordered yesterday that short sellers must reveal their positions when they reach 0.2 percent or more of a company’s capital and then make new filings for each additional 0.1 percent. 
  • Italian politicians including Paolo Bonaiuti, an aide to Prime Minister Silvio Berlusconi, blamed the market slide on “speculators” and pledged action to rein in investors perceived to be attacking Italy. Bonaiuti said Italy would be united “in blocking the effort of speculators.” 

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