Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Barclays Says Italy Is Finished
#1
Barclays Says Italy Is Finished: "Mathematically Beyond Point Of No Return"

[Image: picture-5.jpg]

Submitted by Tyler Durden on 11/08/2011 20:13 -0500


Euphoria may have returned briefly courtesy of yet another promise for a resignation that will likely not be effectuated for weeks or months, if at all, and already someone has done the math on what the events in the past several days reveal for Italy. That someone is Barcalys, the math is not pretty, and the conclusion is that "Italy is now mathematically beyond point of no return."
Summary from Barclays Capital inst sales:

1) At this point, it seems Italy is now mathematically beyond point of no return
2) While reforms are necessary, in and of itself not be enough to prevent crisis
3) Reason? Simple math--growth and austerity not enough to offset cost of debt
4) On our ests, yields above 5.5% is inflection point where game is over
5) The danger:high rates reinforce stability concerns, leading to higher rates
6) and deeper conviction of a self sustaining credit event and eventual default
7) We think decisions at eurozone summit is step forward but EFSF not adequate
8) Time has run out--policy reforms not sufficient to break neg mkt dynamics
9) Investors do not have the patience to wait for austerity, growth to work
10) And rate of change in negatives not enuff to offset slow drip of positives
11) Conclusion: We think ECB needs to step up to the plate, print and buy bonds
12) At the moment ECB remains unwilling to be lender last resort on scale needed
13) But frankly will have hand forced by market given massive systemic risk

Hint:Not Good.Sell EUR, Buy Gold
The broader referenced report can be found here.
And the assocaited powerpoint is below:
http://www.zerohedge.com/news/barclays-s...-no-return
"The philosophers have only interpreted the world, in various ways. The point, however, is to change it." Karl Marx

"He would, wouldn't he?" Mandy Rice-Davies. When asked in court whether she knew that Lord Astor had denied having sex with her.

“I think it would be a good idea” Ghandi, when asked about Western Civilisation.
Reply


Possibly Related Threads…
Thread Author Replies Views Last Post
  2 Japanese carrying $134 bil worth of U.S. bonds detained in Italy Peter Presland 132 50,683 18-02-2012, 12:37 PM
Last Post: Peter Lemkin
  Barclays in Treasury debt talks David Guyatt 3 2,803 16-03-2009, 08:18 PM
Last Post: Jan Klimkowski
  Barclays 'corrupt regime' claim David Guyatt 0 1,988 11-03-2009, 12:56 PM
Last Post: David Guyatt
  The Barclays Octopus - Who Controls The Big Money In The USA BEFORE The Crash In 2007? Magda Hassan 0 2,427 Less than 1 minute ago
Last Post:
  Head Of Communications At Italy's Scandal-Ridden Banca Monte Paschi Has Committed Suicide Danny Jarman 0 2,867 Less than 1 minute ago
Last Post:
  Barclays Rich Ricci resigns David Guyatt 0 2,733 Less than 1 minute ago
Last Post:
  Fake bonds in Italy, uh Vatican, again Carsten Wiethoff 0 5,182 Less than 1 minute ago
Last Post:
  Barclays now investigated over its "Dark Pool" trading system David Guyatt 0 2,346 Less than 1 minute ago
Last Post:
  Opec is finished David Guyatt 0 3,436 Less than 1 minute ago
Last Post:

Forum Jump:


Users browsing this thread: 1 Guest(s)