Just when we thought the most ridiculous thing one could expect from the market was another “all shall be well” rumor from Merkozy (with details pending of course), and the algos naturally falling for it in what is set to be a record low volume session, here comes Italy and shows just how horribly wrong we were. From Bloomberg: “Italian Prime Minister Silvio Berlusconi’s Undersecretary Carlo Giovanardi said the government will study if it’s feasible to conduct drug tests on stock-exchange traders, with the help of the Milan Bourse and the country’s market regulator. Giovanardi, who is in charge of family policy and drug prevention, said that the abuse of drugs including cocaine might explain part of recent stock volatility.”
And there you have it: cut out the Cocaine abuse by traders and all shall be well in the stock market, and retail will be delighted to flood right back in and throw what little money it has left into the grand global ponzi. We are not quite sure what binary stimulant will be used to explain the HFT-driven volatility – after all, and especially on days like today, about 80% of market volume is purely robotic, but we are confident Carlo will figure something out. And that, ladies and gentlemen, is how you deflect attention from market volatility as a byproduct of being a hooker-addicted pederast who blew up a country’s economy.
Read more: zerohedge