1. This chart accompanies the podcast recorded
August 21st, 2011
ITALIAN BONDS
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
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2. This chart accompanies the podcast recorded
August 21st, 2011
ITALIAN BONDS
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
slide is considered to be your explicit acceptance of the Disclosure Statement and the Terms of Use found on the last page of this document.
3. This chart accompanies the podcast recorded
August 21st, 2011
ITALIAN BONDS
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
slide is considered to be your explicit acceptance of the Disclosure Statement and the Terms of Use found on the last page of this document.
4. This chart accompanies the podcast recorded
August 21st, 2011
ITALIAN BONDS
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
slide is considered to be your explicit acceptance of the Disclosure Statement and the Terms of Use found on the last page of this document.
5. This chart accompanies the podcast recorded
August 21st, 2011
ITALIAN BONDS
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
slide is considered to be your explicit acceptance of the Disclosure Statement and the Terms of Use found on the last page of this document.
6. This chart accompanies the podcast recorded
August 21st, 2011
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
slide is considered to be your explicit acceptance of the Disclosure Statement and the Terms of Use found on the last page of this document.
7. This chart accompanies the podcast recorded
August 21st, 2011
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
slide is considered to be your explicit acceptance of the Disclosure Statement and the Terms of Use found on the last page of this document.
8. This chart accompanies the podcast recorded
August 21st, 2011
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
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9. This chart accompanies the podcast recorded
August 21st, 2011
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
slide is considered to be your explicit acceptance of the Disclosure Statement and the Terms of Use found on the last page of this document.
10. This chart accompanies the podcast recorded
August 21st, 2011
ITALIAN BONDS
Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
The content of this slide should not be considered investment advice of any sort, nor should it be used to make investment decisions. Use of this
slide is considered to be your explicit acceptance of the Disclosure Statement and the Terms of Use found on the last page of this document.
11. This chart accompanies the podcast recorded
August 21st, 2011
CHART TITLE HERE
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Listen to the original podcast for this slide at either www.GordonTLong.com/GlobalInsights or www.TraderView.com/GlobalInsights
Editor's Notes
Italian Bonds >> Fascism versus Crony Capitalism Needs some explanation: Fascism was the belief that Governments and Corporations needed to have integrated interests & goals Crony Capitalism works because Corporations convince governments its goals are saleable to the public and flood the politicians with Campaign support of various legal and illegal means.
Leading Plan being discussed is a 20% First – Loss Insurance Guarantee on Italian & Spanish Bonds – FT this morningHOUSE OF CARDS:The Italian & Spanish Guarantee level 20% or HIGHER means France’s Triple AAA becomes exposed. EFSF low interest borrowing is based on France and Germany being AAA Irish & Portuguese Heavy Sellers because of fears the fund could be underminedVideo Conference: Obama, Cameron, Merkel and Sarkozy Merkel Cancels EFSF Speech to Assembly BLITALIAN BONDS Above 6% for the first time since the ECB illegally (according to the German Bundesbank and Bundestag) began buying them in early August, Fitch yesterday followed everyone else with a ‘negative’ on Italian BanksCHART:After intervening for 3 days out of 3, Italian bonds have just taken out all recent lows and threaten to drag the entire Italian, and thus European market with them. You can expect an ECB intervention any second or else the bottom is about to fall out of the market. Highlighted are all previous ECB (money losing) interventions.
Just eyeballing 2012 I see 250 + 170 + 145 + 110 = €675B
Covered Bonds are basically what we called MBS’s or Mortgage Backed Securities and ABS or Asset Banked Securities
MARTIN WOLF’S ARTICLE: “There is no sunlit future for the euro” GERMANY1- Cost & Productivity Advantage2 -
EBA 5 POINT ADJUSTMENTS (FOR €80B)Markets Lose Faith in Bank Recap Plan Haircuts InsufficientAddding UK, German & Most Scandinavian Bond Price IncreasesUses Bond Prices not lower CDS pricing which supports hedgingHas Updated Sovereign Exposures Bonds MaturingSelling Down HoldingsStocking Up on CDSs to Net Exposures Reduced Number of Banks No Spanish "Cajas"No German public sector LandesbanksRemoving 'non systemic' Institutions Uses "Unstressed" Scenario versus "Adverse" Scenario from July Tests
