can someone explain Italy 10 Year bond importance

Quote from 5yrtrader:



Now if someone can tell me why the Euro is still trading around 13800 vs the USD with all this going on, I would be interested to hear (read) your explanation.
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EURUSD has moved lockstep with IR differentials, a relationship in place for some time now. Periphery issues did not drive real money outflows like most active participants anticipated. Eurozone inflows remained steady, even favorable. Differential interest rates have simply favored euro. This has reversed course as of late with latest ECB cut, with German-US IR differentials moving lower again.

White: EURUSD
Red: German 5yr vs US 5yr

Credit: GMT ;)
 

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Quote from Syprik:
EURUSD has moved lockstep with IR differentials, a relationship in place for some time now. Periphery issues did not drive real money outflows like most active participants anticipated. Eurozone inflows remained steady, even favorable. Differential interest rates have simply favored euro. This has reversed course as of late with latest ECB cut, with German-US IR differentials moving lower again.

White: EURUSD
Red: German 5yr vs US 5yr

Credit: GMT ;)
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A market full of silly carry monkeys is an accident waiting to happen...
 
Because Italy must refinance 40 billion euro of its expiring debt in 2012 and the market will not be willing to lent any money at reasonable rates. ---> default

This happens because the EU is setup with a monetary system like that of the gold standard. Via accumulation of surpluses Germany has a current account surplus of $182 billion with the PIGS having a deficit of $183 billion, i.e. a zero-sum game.

http://krugman.blogs.nytimes.com/2011/11/07/wishful-thinking-and-the-road-to-eurogeddon/

The Germans have passed legislation to prohibit the ECB from monetizing debt because they want to control the EU and be the lender. Most of the money supply in the EU is debt and the EU banks have an average 36% leverage, as opposed to a 10% leverage in the US.

Result --> Chaos will strike soon (unless they monetize). US will be the only real financial power with China dependent on US prosperity.
 
Europe should allow all cash into their banks no questions asked about where it came from.

Hundreds of Billions will flow back into European banks overnight, The likes of Switserland and the UK will be hit in the heart and it won't cost the people one penny.
 
Quote from Debaser82:

Europe should allow all cash into their banks no questions asked about where it came from.

Hundreds of Billions will flow back into European banks overnight, The likes of Switserland and the UK will be hit in the heart and it won't cost the people one penny.
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You probably think drug dealers are stupid people and they will put their money in institutions that are ready to be nationalized all over the EU.
 
Quote from intradaybill:

You probably think drug dealers are stupid people and they will put their money in institutions that are ready to be nationalized all over the EU.
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Operations like the one I suggest have been taking place all over Europe bringing home tens of Billions but obviously the fine scared off a lot of people.

A no questions asked amnesty would certainly bring home a multitude of that.
 
Quote from Debaser82:

Operations like the one I suggest have been taking place all over Europe bringing home tens of Billions but obviously the fine scared off a lot of people.

A no questions asked amnesty would certainly bring home a multitude of that.
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Are you saying it is okay for Europeans who have made a lot of noise about human rights to accept blood money/dirty cash?
 
Quote from Debaser82:

Operations like the one I suggest have been taking place all over Europe bringing home tens of Billions but obviously the fine scared off a lot of people.

A no questions asked amnesty would certainly bring home a multitude of that.
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An immoral act for sure, as such amnesty essentially legalizes crime receipts.

The easy way out is for the EU to print some money. Germans cannot rule everyone else for much longer.
 
Quote from intradaybill:

Because Italy must refinance 40 billion euro of its expiring debt in 2012 and the market will not be willing to lent any money at reasonable rates. ---> default

This happens because the EU is setup with a monetary system like that of the gold standard. Via accumulation of surpluses Germany has a current account surplus of $182 billion with the PIGS having a deficit of $183 billion, i.e. a zero-sum game.

http://krugman.blogs.nytimes.com/2011/11/07/wishful-thinking-and-the-road-to-eurogeddon/

The Germans have passed legislation to prohibit the ECB from monetizing debt because they want to control the EU and be the lender. Most of the money supply in the EU is debt and the EU banks have an average 36% leverage, as opposed to a 10% leverage in the US.

Result --> Chaos will strike soon (unless they monetize). US will be the only real financial power with China dependent on US prosperity.
More...

Europe will be irrelevant, and the USA and China will be CO-DEPENDENT on each other ushering in a multi-polar world order.
 
Quote from billpritjr:

RE: Euro financial crisis

Can someone explain to me why everyone is concerned if the Italian 10-year bond reaches 7% ?

Also, why did we see more volume in EWQ/France ETF versus EWI/Italy ETF today ? If the resignation was "good news" for Italy ?

Thanks guys
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Heaven & Hell

HEAVEN is where:
The police are British
The chefs Italian
The mechanics are German
The lovers are French
and it's all organised by the Swiss

HELL is where:
The police are German
The chefs are British
The mechanics are French
The lovers are Swiss
and it's all organised by the Italians!!
 
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