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Old 05-29-2018, 11:53 PM
 
Location: Silicon Valley
2,773 posts, read 1,219,983 times
Reputation: 5100

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So, Italian elections have the world in jitters again. Money pulled from the world markets sharply. Quick concern is two bad choices for Italy will sink whatever progress they've made.

We were all waiting for a spark. What do you guys think, is this the straw on the back?
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Old 05-30-2018, 09:39 AM
 
Location: Lower East Side, NYC
1,844 posts, read 1,095,637 times
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I think people freak out too much. $CGC took a hit. Why? $CGC has nothing to do with Italy. Not the first time I saw this and not the first time I've asked this question. $TVIX was up 26% yesterday. Sheesh.
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Old 05-30-2018, 10:39 AM
 
7,020 posts, read 6,646,258 times
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Banks took a large hit (4 percent) due to their holdings of Italian debt. That is what drove the indices down. The large cap techs comprising a large weighting in the SPX were basically untouched. You're talking about leveraged products which may be crowded trades and subject to much larger moves.

There were threats by EU politicians that the debt markets would be used to scare Italy from its turn to populism. Expect to see a lot of the same as happened in Greece. The difference is that the populists don't control the government in Italy.
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Old 05-30-2018, 11:10 AM
 
24,757 posts, read 26,824,957 times
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I have no idea what will happen, but I bought extra shares of my global stock fund yesterday. Lucky timing, perhaps, as markets are up today.
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Old 05-30-2018, 04:47 PM
 
5,406 posts, read 5,657,440 times
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Seriously why do people even care? How does Italy affect anyone?
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Old 05-30-2018, 07:16 PM
 
Location: Silicon Valley
2,773 posts, read 1,219,983 times
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Quote:
Originally Posted by mysticaltyger View Post
I have no idea what will happen, but I bought extra shares of my global stock fund yesterday. Lucky timing, perhaps, as markets are up today.
Iíve been adding to Latin American banks. Ilf fell 4 percent yesterday. Had to travel for work today so I missed.

Sorry. Phone.
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Old 05-31-2018, 06:07 AM
 
865 posts, read 645,121 times
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Quote:
Originally Posted by NJ Brazen_3133 View Post
Seriously why do people even care? How does Italy affect anyone?

For the same reason that subprime mortgages were worth caring about. If Italy doesn't repay the banks, the banks become too impaired to make loans to the productive parts of the economy.

Also, Italy's woes drag down the Euro which allows Germany to remain hyper-competitive for exports. The normal currency/export economy feedback loop is broken when you have two wildly deviating economies using a common currency.
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Old 05-31-2018, 06:14 AM
 
5,467 posts, read 2,316,496 times
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Quote:
Originally Posted by NJ Brazen_3133 View Post
Seriously why do people even care? How does Italy affect anyone?
It all has to do with dominoes and the unravelling of a system that has kept the peace for nearly 80 years.
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