Axis of Disaster - Monday afternon update by Golem XIV

"Well Italy is certainly doing the business for Europe and the Euro today as I suspected it might.

Italy's other huge bank Intesa Sanpaolo just dropped 6% of it share price before trading in its shares was halted. All the European bourses are way, way down.  French and German exchanges are down 2%+ while Spain and Italy are down 3% and 3.24 % respectively as of 14.16 GMT.

And the Euro is plunging against the Swiss franc again.  UniCredit's East European business is hurting now.  I wonder how much is pure CDS speculation and shorting and how much is capital  flight. It's bound to be both but I wonder which is leading which?

One thing's for sure Greece and Italy are going to make a lovely pair.

Remember the other nation (other than Italy) whose banks have exposure to banking in Hungary and the region is...yep you guessed it, Greece. So as those currencies in Hungary Romania and Bulgaria fall against the rampant Swiss Euro, the Italian and Greek banks will feel the defaults. Two thirds of the outstanding debt in Hungary, Romania and Bulgaria is in Swiss Francs."

http://golemxiv-credo.blogspot.com/2011/07/axis-of-disaster-monday-update.html