iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,432 Blog Posts

Why Did Markets Shrug Off Italian Referendum Results?

It’s the same reason why they’ve shrugged off a weaker than expected China, BREXIT, Trump, a once collapsing oil and gas industry, negative rates, and three-decade low productivity numbers: “they” don’t care.

Algorithms are fired up, locked and loaded to accumulate securities. The institutions have full control over the market. Once upon a time, individuals moved markets. Today, it’s all rigged by government intermingling, with the assistance of the banks who have endless cash reserves to disrupt markets, in addition to the stock buybacks enacted by corporations rich off globalization.

Slave factories are very profitable.

After the Italian referendum, which will lead to a new Italian government that is not friendly towards the EU, markets were expected to drop. The euro was lower by 1.5% and futures headed lower. Naturally, the dips were bought. The euro went up and only a handful of Italian banks traded down sharply. Remember the 2011 EU crisis, which was fomented by PIGS (Portugal, Italy, Greece and Spain)? Back then, even French yields were diverging from Germany. It was widely believed that the entire EU would collapse because Merkel wouldn’t backstop Greece. Well, that got resolved via Draghi and QE and markets have been happy ever since then.

But the Italian referendum is a huge game changer — one that the market isn’t taking seriously because the threat isn’t imminent.

Do the math. If the Five Star Movement takes power in Italy, you can kiss the EU goodbye. Italian banks will fail. German banks will eat the losses. Kiss your stocked market goodbye. Also, and let’s not forget, French elections are coming soon. Le Pen is ardently anti-EU and has a great chance of winning there.

But I guess we’ll deal with this during 2017.

Here’s a fool from Northern Trust trying to get his small brain around the whole scheme.

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14 comments

  1. it is showtime

    When are you people, going to update your language
    to current times….?

    You realize there are chic mechanisms available in computing that might be able to impose direction on daily stock results?
    You realize you essentially have an early 90s or 00s mentality saying it was markets that acted, that shrugged, shrugged at?

    how many times is a “trading paradox” going to produce before your mushy cranium. that an insider cabal has a grasp fist and harpoon over your financial system. 3 major gut punches inarguably to their core power structure? Markets defy any scintilla of normalcy or psychological independence and you still say it just decided to ignore shrug and in all 3 cases celebrate and adulate? (new new new, new, highs?) (investors in europe and us decided to Buoy new political uncertainty? really? and place volatility at paradisic calm?)

    It’s obviously an indignance coming from the
    programmers,
    Seeing the carefully constructed universe,
    disassembled,
    ———————
    Frickin 90s
    saying markets
    yawned

    I SAID INDEXES HAD BEEN USURPED YEARS AGO, THEY THOSE WHO HAVE USURPED: ONLY AND HAVE ONLY BEEN BUBBLING VALUATIONS, CLEARLY NOW COORDINATING TRICKS ALL OVER THE PLACE, WHEN ARE YOU GONNA STOP BEING DUMB, AND COMMUNICATE ACCURATELY, EVEN THOUGH YOU’RE IN THE NINTH INNING

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    • mushroomz

      Nice lunatic rant

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    • jts5362

      Showtime has been calling doom since 2012

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      • it is showtime

        WRONG

        thinkers adjust. bears who were just realists were right if dow-components werent being directly induced. kind of changes the predictive playing field doesn’t it.

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  2. moosh

    Lol, a friend told me bac warrants b were pumped to him today.

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  3. bushwacker2

    The simple fact of the matter is that money managers and hedgies like Bill Ackman need to find ways to have a positive year and are having to play catch up by buying every single dip or flat 60 minute consolidation they can find to eek out some returns. Hope springs eternal.

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    • it is showtime

      hedgies are sailing the currents like everyone. the wind and waves formed by master guidance presence. vix. yields. junk. ma’s. usdjpy. oil.

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  4. ironbird

    The oldest Christmas manger themed decoration in the house. Stamped made in Italy. They will go back to making things.

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  5. JakeGint

    Fuck all this. Jake was at 21 tonight and shook hands with the POTUS elect, surrounded by 12 secret service dudes. Unfucking believable, just sitting there, having drinks and he marches in with the whole famiglia. 20 minute later, in comes Senator Phil Gramm -yes from the 80’s– all on his own. Shook that old fuckers hand too, because you know of he’s coming to help with the budget, he’s going to MAGA.

    Craziest thing? Went to take a leak later. Baron was in the bathroom. Alone, which I thought was weird and maybe dangerous.

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