Barclays: Italy mathematically beyond point of return. EU imploding.

[Fury]

Barclays Says Italy Is Finished: "Mathematically Beyond Point Of No Return"

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
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

Full Report:

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/10/can%20italy%20save%20itself.pdf


http://www.zerohedge.com/news/barclays-says-italy-finished-mathematically-beyond-point-no-return



Now all we need is one of these pro-EU assholes like kcballer to get on here and claim how shitty capitalism is and how great Europe is at everything.


H3y ga1z, the 3U is d0inG gr8! OnLy 3/4 of it's m3mb3rz r br0ke! Lettuce c0py i7 h3re!  

[Fury]

Stock market dropped close to 400 today, Italian bonds push over the dreaded 7% mark today, reports are coming out non-stop that Germany and France are exploring ways of leaving the Euro or kicking countries out of the EU and this thread has 0 replies. The coming Italian collapse and the following EU collapse is going to bring the entire US economy (and Barack Obama's reelection chances) right down with them.

That's not important, though. Got to talk about Herman Cain.  


We're watching the European socialist government model die before our eyes. Decades of government largess lavished upon lazy deadbeats has left the western world bankrupt and insolvent; the populace spoiled so rotten they refuse to accept any sort of concessions whatsoever. Many people on this planet could do with opening a finance or economics book.