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  • Italy's Berlusconi to resign after approval of austerity law

It is like the Greece Prime Minister ... resign, no resign, resign, no resign .....
don't quite understand why this is positive to EURO, as I saw EURO spiked.
yesterday we had greek, now we have italy,,,who will be the next?
next wud be euro itself............
Seems like the competition is hard for "who will be next?"
No one left to resign.... EU leaders should hold a meeting and discuss this issue first - who's next to resign?...
What is possitive? Why EU is up, may be for the chicks of Berlusconi
he will never resign. never ever
I believe markets may be terribly wrong. Berlusconi is a political genius. Italy had 60 governments during the last 65 years. Berlusconi survived 17 years in this system, more than anybody else. He survived more than 50 votes of confidence. The political system surrounding this man is sick to its very core! Does anybody seriously believe Italian politicians will come to their senses now all of a sudden? Who but Berlusconi will be able to at least somehow hold this system together? How long will this 'government of experts' that is now discussed hold? Six months? One year? I am afraid now total political chaos will reign in Italy.
Well there is spain,ireland aswell.
He who fears being conquered is sure of defeat - Napoleon Bonaparte
Friends these events with the ministers, can lead to a disbelief in the euro?
This whole one is ill. If he resigns, if not nothing changes. He will not be a miracle.
He will make sure the austerity law will not pass, so he won't have to resign!
was like yo-yo game ... better quit before things get too bad
Quoting AnonYmos
I believe markets may be terribly wrong. Berlusconi is a political genius. Italy had 60 governments during the last 65 years. Berlusconi survived 17 years in this system, more than anybody else. He survived more than 50 votes of confidence. The political system surrounding this man is sick to its very core! Does anybody seriously believe Italian politicians will come to their senses now all of a sudden? Who but Berlusconi will be able to at least somehow hold this system together? How long will this 'government of experts' that is now discussed...
Word of wisdom indeed, Anon. For one to stay in power so long, he is not a 'simple' guy. I have the same opinion that it may be bad for Italy in the short term. However, if they can find a 'better' PM, then it may benefit Italy in the long term.

A new PM should nonetheless benefit Italy in the long term because when one is in power too long, the mind is likely to be corrupted and serving the people become the least of his agenda. This is evident in many great leaders in history who reined magnificantly during their glorious era.
BULLET: EURO-DOLLAR: Stalled and reversed after a bunch of...
08-nov.-2011
EURO-DOLLAR: Stalled and reversed after a bunch of stops were flushed
above $1.3825 and $1.3845, and pair has reversed for trade to $1.3825
area now as traders ponder the possible succession plans in Italy, there
are no conspicuous choices, some say. Other, more wizened by markets,
recall that Berlusconi, for all his faults, presented some leadership
stability after the country had run through a string of about a dozen
years with short-lived governments. Should Italian government revert to
that pattern of short-lived interim leadership, the consequences for
Italy could be disastrous, one veteran trader warns.
Sovereign debt load of Euro PIIGS has toppled and banded naked two prime ministers; it is like MENA Spring revolution; who is next? Ireland seems to be doing fine with austerity measures so I think the “Midnight Fairy Ship” may dock on Spaniards coast, and Portugal is not far behind.
There is always a price for promises you don't keep!
resign no resign , euro has enough strength to hold on , at the end its not about an minister its about the economical plan of any country in wich the move on, euro will remain in the same channel untill some thing very good wich will move him up or some thing v bad that will move him down
Three PMs if Iam not mistaken ...Portugal has new one too.
The Market pays you to be disciplined
Quoting AnonYmos
I believe markets may be terribly wrong. Berlusconi is a political genius. Italy had 60 governments during the last 65 years. Berlusconi survived 17 years in this system, more than anybody else. He survived more than 50 votes of confidence. The political system surrounding this man is sick to its very core! Does anybody seriously believe Italian politicians will come to their senses now all of a sudden? Who but Berlusconi will be able to at least somehow hold this system together? How long will this 'government of experts' that is now discussed...
Very interesting post.
The thing is, the 'market' you mentioned consists mostly of those traders who have no idea of the reality in concerned country(ies).
Quoting Aerton
Nagyon érdekes pozíció.
A dolog van, az a piac, amit említettél, javarészt áll azok a kereskedők kiknek nincs elképzelésük a valóságról érintett country(ies).
You could have written it calmly, that idiots.
Quoting Sanguis
You could have written it calmly, that idiots.
??
Quoting Aerton
??
The dealers, who onto the news of Berlusconi resignation the market is bought without reason. They the idiots.
Quoting AnonYmos
I believe markets may be terribly wrong. Berlusconi is a political genius. Italy had 60 governments during the last 65 years. Berlusconi survived 17 years in this system, more than anybody else. He survived more than 50 votes of confidence. The political system surrounding this man is sick to its very core! Does anybody seriously believe Italian politicians will come to their senses now all of a sudden? Who but Berlusconi will be able to at least somehow hold this system together? How long will this 'government of experts' that is now discussed...
Well I think you dont have to be a genius when you own 3 out of 6 of the most important tv channels (and you can heavily influence the others), newspapers, publishing houses, football teams (i.e. people's minds)

Besides, he survived more than 50 votes of confidence because he was so powerful to be able to "buy" parliament members votes in exchange of important government posts (among the other tricks)

While in other EU countries parliaments discuss policies against the crisis, the italian parliament of the Berlusconi era discusses laws to keep him out of jail.

It's finally time for Italy to get rid of this man and regain the credibility it used to have in Europe.
Quote
It's finally time for Italy to get rid of this man and regain the credibility it used to have in Europe.

Hope his resignation will make it happen.
EUR/USD Up, But Worries Still Persist
08-nov.-2011
2014 GMT (Dow Jones) EUR/USD rallied following news Italian Prime Minister Berlusconi plans to resign, but moves much higher on the news are unlikely, says BNZ currency strategist Mike Burrowes. "It was pretty much priced into the market. Now it's going to be more about Greece and whether Papademos should be the leader of the new coalition, which seems likely." EUR/USD is at 1.3834. Burrowes adds his focus was on the bailout fund now that things in Greece and Italy were progressing. "No one is talking about the fact that the major bailout fund doesn't have any money." He puts support at 1.3780 with resistance at 1.3910.
Quoting cop2551
don't quite understand why this is positive to EURO, as I saw EURO spiked.
Everything is one of two possibilities: Euro positive, or Dollar negative. This "crisis" in the EU has taught us all this.
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they think the problem will be gone faster if Berlusconi resign... so they buy the euro...
Dear guys, I am writing from Italy.
Let me tell how I see the situation. Berlusconi appeared to be quite a different man just a couple of years ago when he was elected. He actually collected bunches of votes from all those who where simply 'against' the left coalition, including many 'catholics' and moderates. Italy had somehow been 'misdirected' by this man and his promises, certainly thanks to his power on public media.
In the last months he revealed what he was inside: an old, selfish man, addicted to sex and only interested in his own affairs.
Many many Italians now hate him, both because of his disgusting private (or public ?) life and his extreme incapacity in understanding how he is ballasting the whole nation.
His resignment will definitely be a relief for us Italians all.
For what concerns the alternative to him I can tell you that I can see around some good fellows, yet the decisions to take are extremely unpopular, therefore what we need is a leader that can both take these decisions and explain to the nation WHY they are so necessary.
Still I want to believe that Italy will make it through it.
We only need to get rid of all these professional politicians and learn to rely on a few smart (and young) guys.
Everything rose beside low traffic. Illikvid is the whole market.
Quoting clockwork71
Everything is one of two possibilities: Euro positive, or Dollar negative. This "crisis" in the EU has taught us all this.
Yap, i don't even care about the debt crisis, euro area faces recession and is clearly weaker than U.S. economy and the result is strooonger euro...hurraaayy

Same goes with the pound...they seem to be QE'ing the sterling stronger...(Y)
Quoting grid
We only need to get rid of all these professional politicians and learn to rely on a few smart (and young) guys.
Nice to see a post from an Italian about Italy here. More Italians welcome, it will make this thread much more valuable.

Just a quick question: what's the public opinion about Euro (the currency) in Italy?
Quoting grid
Dear guys, I am writing from Italy.
Let me tell how I see the situation. Berlusconi appeared to be quite a different man just a couple of years ago when he was elected. He actually collected bunches of votes from all those who where simply 'against' the left coalition, including many 'catholics' and moderates. Italy had somehow been 'misdirected' by this man and his promises, certainly thanks to his power on public media.
In the last months he revealed what he was inside: an old, selfish man, addicted to sex and only interested in his own affairs.
Many...
yes indeed and exit of this euro system, exit of tobe slave of germany !!!!
China assure to increase import to support Europe (eurozone). But from which Euro country ? Probably more from germany and investment only more like in north europe more. The PIIGS should now wake up and turn the back like Briten.
Quoting Aerton
Just a quick question: what's the public opinion about Euro (the currency) in Italy?
Who cares? The German people don't want it, yet the German government continually works against their wishes. Italy isn't any different.
Anyway it's too late now.
I'm Italian as well (though I'm living in Melbourne right now). If Italy didn't join the Euro 10 years ago, now it would probably be in the midst of a civil war, with stagflation reigning (zero growth and inflation at 20%). It was a very fortunate event that the other countries allowed us to join the EZ (even if we were well above the parameters needed to join -> 60% debt/gdp and 3% deficit, while Italy had 120% debt/gdp and > 4.5% deficit). We had 10 years to get back on the right path. We absolutely DIDN'T do it at all. Now there will be consequences to pay. Berlusconi was not a "political" problem for Italy, the other members of his government did quite well indeed. It was only an issue of credibility to the eyes of the rest of the world, and to the eyes of the Italian people themselves (especially in the last couple of years). Virtually the resignation of Berlusconi won't change a single thing, if not the short-term effect of giving back to Italy a sparkle of credibility and appearance of seriousness. The opposition and the other parties can't manage to govern themselves and their own members, let alone a whole nation... A government made of technical and politically independent "experts" would be the best solution to guarantee a follow through for the implementation of the much needed austerity measures, but it won't happen in my humble opinion, because the corruption is so deeply rooted in the Italian system that such a government would not be indipendent from politics and it would end up being a failure. The problem N°1 for Italy (as for PIIGS in general) is the mental attitude of the people themselves. They are very good at pointing the finger to everyone else (let it be Berlusconi, the "crisis", the euro, etc..), but when it's time to make a change they all step back like a herd of frightened sheeps (unlike Germans, or people from Nothern Europe, who are willing to put themselves on the line and accept the consequences of short-term sacrifices for the sake of future improvements). No-one is willing to give up ANYTHING in Italy, not even a single cent of their wealth, they don't give a shit about the future of their nation (not understanding that their own sons will then have to live in that nation...).
The exit from the Euro would be a devastating solution and in less than 10 years Italy would be out of the G20 nations, that's for sure. But the EuroZone itself would greatly benefit from that, Italy has always been (and will always be) dead weight for the Europe.
To answer Aerton's question: the public opinion about the Euro is mixed in Italy. Generally, "simple" people (intended with no offence, just as the average person who doesn't give a crap about economics and big themes and thinks only about his paycheck and how to make ends meet) hate the Euro, they say that since it was introduced their purchasing power fell down (and that's actually true, but the problem is not the Euro...). On the other hand, people who own a business and are more involved with the economy (and therefore can see the big picture) acknowledge that without the Euro nowadays we would swim in a sea of crap. So, probably, most of the people feel AGAINST the Euro right now.
Trumank, thanks. Much as I thought.
I don't believe though that Italy without euro will be worse-off than now, and definitely it won't be out of G20. It's a very highly industrialized nation, world class manufacturer and exporter, and even the fashion centre of the planet.
You are right about that, Italy can count on exactly 2 things to boost his growth: luxury goods and tourism. Virtually it's not a poor country, nor is it destined to be. My doubts, though, are not about the potential of Italy, but they concern the way in which this potential is supposed to be effectively brought to life. During the 1990s, when we as a nation still had decisional power over both monetary policy and fiscal one, we miserably failed to achieve any good result or improvement whatsoever. The Bank of Italy kept printing money relentlessly to pay out an increasingly overwhelming debt, in an endless spiral. When we joined the Euro, at least we were constrained to follow a common monetary policy imposed by the ECB, which at least slowed down the debt from increasing at an unstoppable pace. And, in the meantime, we didn't keep up with the fiscal policies necessary to compensate the loss of power over the monetary policy. If we pull ourselves out of the EZ (it's unlikely that we'll be kicked out) and get back our authority over the monetary policy, I can only see the ghost of the 1990s coming back, hyperinflation and zero growth on the horizon... Even a country with very good potential, like Italy, cannot work in this economic context. As Italian, I am really concerned about the prospect of an exit from the EZ ;(
Quoting trumank
. As Italian, I am really concerned about the prospect of an exit from the EZ ;(
Europeans, correct me if I am wrong, but don't most Europeans feel this way?

People may hate the house they live in, but when they think of leaving this house, despite all its flaws, they are filled with an unreasoning fear.
It would be interesting to hear from some Germans how they feel about this.
I think that our (Italian) fear of having to leave the EZ is not unreasoning, because despite the recent developments of the last few months, we are in an economic situation which is a lot more healthy now than it was 20 years ago. The same holds true for every other "weak" country of the EZ. Only Germany is being taken aback in these first 10 years of the Euro in my opinion. So I wonder how the people are feeling up there.
Quoting trumank
(...) The opposition and the other parties can't manage to govern themselves and their own members, let alone a whole nation... A government made of technical and politically independent "experts" would be the best solution to guarantee a follow through for the implementation of the much needed austerity measures, but it won't happen in my humble opinion, because the corruption is so deeply rooted in the Italian system that such a government would not be indipendent from politics and it would end up being a failure. The problem N°1 for Italy (as...
That's why I think Italy is in principle even worse off w/o the cavaliere. He was embarrassing, he was incapable but he was some sort of centre of gravity in a extremely corrupt and chaotic political system. Don't change the horses midstream, is what they say.
Italy's 10-year yield 7.4%... let the fun begin!
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I think the problem is not the euro, not the system but lies with the people running the system, until we eradicate corruption there can be/nor will be any kind of unity among the EU countries
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  • Posted: Nov 8, 2011 1:49pm
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     Newsstand
    Category: High Impact Breaking News
    Comments: 43  /  Views: 10,462