Italy on the Margin

Lunatic fringe
I know you're out there
You're in hiding
And you hold your meetings
--Red Rider

Turmoil is increasing in Italy. Yesterday a major London clearing house raise margin requirements on Italian sovereign debt, sparking a wave of bond selling. Longer dated Italian sovereign debt is marking new lows this am. Commensurately, Italian swap spreads are blowing out.

Italy PM Berlusconi is rumored to be stepping down soon. My buddy Fil shares some thoughts on the consequences.

Markets around the world are listening to some chin music as a result. Stateside markets have opened down a coupla percent.

position in SPX