Italy asks China to buy debt and Markets rally

[Small Biz Owner]

Italy was not in trouble according to their prime minister Silvio Berlusconi. So why are they asking China to buy their debt?

Italy asks China to buy its debt: report | Firstpost
11 hours ago ... Italian officials told FT that Lou Jiwei, chairman of China Investment Corp,
headed up a delegation to Rome last week

Markets rally because Italy is so insolvent?

[maui1]

desperate people do desperate things............

what bank, public company, country, is going to do anything but lie, when it comes to being insolvent?

you can't make that insolvent info public and expect to go surprise bk and reorganize. haven't we had enough examples these last few years, to not believe anything said by anyone that is having financial issues?

[Small Biz Owner]

Italy has a national debt of 120% of gross domestic product (GDP) and accounts for 23% of all eurozone sovereign debt.

Which means, Italy is spending $1.20 for every $1.00 it brings in.

According to the International Monetary Fund, it will need to raise funds equalling as much as 20% of its GDP in 2012 to refinance its debt.

[Driftr]

Sept 13, 2011 9:51:26 GMT -5 Small Biz Owner said:

Which means, Italy is spending $1.20 for every $1.00 it brings in.

At least they're not doing anything crazy like spending at 1.30 or 1.40 for every dollar they bring in...

[Small Biz Owner]

or $1.54 per $1.00 like Greece.

[Small Biz Owner]

Analysts: China Unlikely to Rescue Italy
Wall Street Journal - Dinny Mcmahon, Tom Orlik - ý20 minutes agoý
China's government isn't likely to ride to the rescue of the debt-hobbled Italian government, analysts said, and buyer interest in an Italian bond auction was decidedly lackluster after news of meetings between Chinese sovereign-wealth officials

Italy not to be saved?

More Americans live in poverty
CNN - Annalyn Censky - ý18 minutes agoý
NEW YORK (CNNMoney) -- Amid a still struggling economy, more people in America fell below the poverty line last year, according to new census data released Tuesday.

These are are future consumers?

Best Buy shares hit by sales fall
BBC News - ý41 minutes agoý
Shares in US electronics retailer Best Buy have fallen 7% after it reported another decline in sales. Excluding new store openings, its US sales fell 2.7% in the three months to 27 August from a year earlier, the fifth quarterly decline in a row.

And 5 straight quarters of declining sales



And the DOW is still rallying now, why?

[usaone]

So the Dow should be falling because of Best Buy? What about the 29 other companies in the Dow?

[Small Biz Owner]

So the Dow should be falling because of Best Buy? What about the 29 other companies in the Dow?

You mean the the other 30?, Best Buy is not even in the DOW.

My point is that consumers are cutting back, being laid off again, and have less to spend. Markets are supposed to be forward looking. Based on forward looking information the data and the rally yesterday do not correlate.

[Small Biz Owner]

Sep 14, 2011 · Italy’s funding cost crisis deepened after it emerged that China certainly had not implemented its pledge to buy 10% of Italy’s public debt

OOpsy, now who do they turn to? The USA?

Or will it all come crashing down sooner than we think?

[Small Biz Owner]

China provides an answer why it might help Spain....

China Ties Aiding Europe to Its Own Trade Goals
By KEITH BRADSHER
Premier Wen Jiabao offered to help Europe but demanded that it renounce a main legal defense against cheap Chinese exports.

[wyouser]

S&P downgraded Italy earlier today. Where is China?? FtSE and Dax are both up today. Somebody here want to redo a PIIGS thread going forward? Would be nice to have one thread pertaining to Europe, the Euro and the markets again. Thoughts?

[Small Biz Owner]

The Eurozone is teetering and ready to fall. The implications are yet to be known. What we have now are bankrupt governments, trying to financially back almost bankrupt banks, who are pledging to bailout the bankrupt governments.

Lot's of luck with that.

[Small Biz Owner]

And the EU keeps saying that is all settled. LMAO Greceis spending $1.54 for every dollar they bring in.
Even if the full austerity plan is implemented they still will be running a debt load of $1.27 for every dollar they are bringing in with future declining incomes.

Then it gets really good. because Italy and Spain are in the same sinking boat.

"Italy until July had managed to skirt the worst of the fallout from the debt crisis. $1.20 in debt for every $1.00 it brings in.
While its budget gap was 4.6 percent of GDP in 2010, debt will reach 120 percent this year.

Spain is approaching 100% soon.