Italy Sparks Market Bloodbath: Financial Stocks Collapse

[Donnachaidh]

http://www.zerohedge.com/news/italy-sparks-market-bloodbath-financial-stocks-collapse

So much for the US decoupling. Following 5 days of persistent refusals to deal with reality, the real world finally came back with a bang, and while the overall market tumbled the most in two months, it is really financial stocks that took the brunt of today's beating. As the chart below shows, the XLF has literally collapsed with most major banks on the ropes, and the broker dealer index down 6.45% the most since August 10. The reason? Italy of course, and the fear that once the country is forced to write down its debt, the bank failures will proceed in waves: first Italian banks, then French, and then everyone else, especially those that have already been in the market's crosshairs for their exposure. And if today was ugly, tomorrow promises to be an absolute bloodbath with Italy deciding to proceed with the issuance of €5 billion in 1 year Bills into what may well be a bidless market.



Unable to scramble back to VWAP, the buy-the-dippers faced some uncomfortable reality today in equities as we closed near the lows of the day in ES (on heavy volume). Financials dropped over 5.5% with some of the majors (MS, GS, BAC) and Minors (JEF) stumbling very hard. The biggest drop in financials in over two months (and ES also!) was the worst performing sector as equity markets retraced more of that richness relative to credit that has been hanging over this rally's head. Wherever you looked there was pain with Copper smashed lower (along with silver and less so Gold) as the dollar tore higher after EURUSD fell over 330pips from its morning highs.



More at the link --

[Vincardog]

1. Too bad. The "Masters of the universe" need to discover that they can not buy enough "insurance" to

overcome their fraud in the market.

[hifiguy]

2. Sucks to be the Masters of the Universe

Fuck all of them with an iron stick. I hope they lose their asses. :nopity:

[GreenPartyVoter]

8. Is it a red hot iron stick?

[defendandprotect]

3. kr

[Autumn]

4. Just wondering

should I feel bad? Because for some reason I don't give a fuck.

[sam11111]

5. ? LW in Europe- what do they say is 1) cause 2)cure for Debt crisis?

[mike_c]

6. couldn't happen to a more deserving bunch of asshats....

eom

[anamandujano]

7. Will they be able to socialize their losses and hit the little guy?

I don't understand this stuff so I'm just asking.


*Thanks for the star whoever you are.*