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To: RetiredNow who wrote (104329)	11/17/2011 3:10:40 PM
From: RetiredNow	Respond to of 149317

Dominoes are starting to fall. Barclays claims Italy is now beyond the point of no return and will go the way of Greece and default...I don't agree with their conclusion that the answer is to print money, because as I've said before, that is a simple swap between parabolic interest rates or parabolic inflation of prices. Take your pick. BTW, I'm not big into shorting EUR or buying Gold, because I'm not a gambler, but you can figure out your own wealth preservation tactics. Barclays Says Italy Is Finished: "Mathematically Beyond Point Of No Return" zerohedge.com Euphoria may have returned briefly courtesy of yet another promise for a resignation that will likely not be effectuated for weeks or months, if at all, and already someone has done the math on what the events in the past several days reveal for Italy. That someone is Barcalys, the math is not pretty, and the conclusion is that "Italy is now mathematically beyond point of no return." Summary from Barclays Capital inst sales: 1) At this point, it seems Italy is now mathematically beyond point of no return 2) While reforms are necessary, in and of itself not be enough to prevent crisis 3) Reason? Simple math--growth and austerity not enough to offset cost of debt 4) On our ests, yields above 5.5% is inflection point where game is over 5) The danger:high rates reinforce stability concerns, leading to higher rates 6) and deeper conviction of a self sustaining credit event and eventual default 7) We think decisions at eurozone summit is step forward but EFSF not adequate 8) Time has run out--policy reforms not sufficient to break neg mkt dynamics 9) Investors do not have the patience to wait for austerity, growth to work 10) And rate of change in negatives not enuff to offset slow drip of positives 11) Conclusion: We think ECB needs to step up to the plate, print and buy bonds 12) At the moment ECB remains unwilling to be lender last resort on scale needed 13) But frankly will have hand forced by market given massive systemic risk Hint:Not Good.Sell EUR, Buy Gold The broader referenced report can be found here.