Berlusconi to resign after parliament OKs reforms

[Josquius]

This is...unexpected. But interesting. Wonder if Italy will get competent government from now on....or just Berlusconi 2.
My money is more on the latter.

[jimmy olsen]

This is...unexpected. But interesting. Wonder if Italy will get competent government from now on....or just Berlusconi 2.
My money is more on the latter.

He was rather competent wasn't he? I don't think he could have stayed on top so long if he wasn't.

[Sheilbh]

He was rather competent wasn't he? I don't think he could have stayed on top so long if he wasn't.

I think it depends what you mean by competent.  From what I understand he kept things going, at best, in Italy but did manage to pass an array of laws that helped his own personal and business interests.

[Razgovory]

This is...unexpected. But interesting. Wonder if Italy will get competent government from now on....or just Berlusconi 2.
My money is more on the latter.

He was rather competent wasn't he? I don't think he could have stayed on top so long if he wasn't.

You seriously aren't that naive are you?

[Viking]

This is...unexpected. But interesting. Wonder if Italy will get competent government from now on....or just Berlusconi 2.
My money is more on the latter.

He was rather competent wasn't he? I don't think he could have stayed on top so long if he wasn't.

Telling the stories using only "The Economist" Covers





and my personal favorite.


The Man Who Screwed and Entire Country

[Gups]

He was rather competent wasn't he? I don't think he could have stayed on top so long if he wasn't.

I'm actually struggling to think of a more consistently incompetent leader of a major western country since the war.

[Admiral Yi]

I'm actually struggling to think of a more consistently incompetent leader of a major western country since the war.

Really?  Italy's macro policies have been reasonable.  I can't think of any truly dumbass economic policies.

The only thing I can think of that Italy botched on his watch was that chica journalista ransom and getaway into an American roadblock.

[Viking]

I'm actually struggling to think of a more consistently incompetent leader of a major western country since the war.

Really?  Italy's macro policies have been reasonable.  I can't think of any truly dumbass economic policies.

The only thing I can think of that Italy botched on his watch was that chica journalista ransom and getaway into an American roadblock.

I refer you to the Dow Jones' view on Berlusconi's leadership.

Markets Turn Higher After Berlusconi Offers to Resign

Stocks gyrated Tuesday before ending higher on a day of significant political developments in Italy, the latest country to come under fire in the drawn-out euro zone debt crisis.
Powered by an early rally in Europe, the stock market in the United States rose slightly before a budget vote in Italy that had taken on immense importance for the prime minister, Silvio Berlusconi, after the recent defections of several lawmakers in his party. It passed with numerous abstentions, but Mr. Berlusconi lost his absolute majority.

Stocks then declined or were flat in afternoon trading until about two hours before the end of the session, when news that Mr. Berlusconi had offered to resign — after Parliament passes an austerity package — first emerged.

The Dow Jones industrial average closed up 0.84 percent, or 101.79 points, to 12,170. The broader Standard & Poor's 500-stock index was up 1.17 percent to 1,276, and the technology-heavy Nasdaq composite index was up 1.2 percent to 2,727.

There were no big reactions in credit markets, however. Italian 10-year bonds remained above their 6.7 percent yield, close to the level that forced other countries such as Greece to seek bailouts.

Investors have long been concerned that the debt ills in some of the smaller euro zone nations could spread to those with much bigger economies, a contagion that would be much harder to fix. They have been focusing on Italy of late because of concern about its high debt load, rising borrowing costs and stagnant economy. Interest rates on the country's debt have hit their highest levels since the country joined the euro zone more than a decade ago.

"With all of the debt they have to roll over it is extremely detrimental," said Laura LaRosa, the director of fixed income at Glenmede, adding that the "domino effect" is "absolutely what seems to be happening now."

The Treasury's benchmark 10-year note fell 17/32, to 100 13/32, and the yield rose to 2.08 percent from 2.02 percent late Monday.

Earlier in Europe, stocks closed higher. The Euro Stoxx 50 index, a barometer of euro zone blue chips, was up 1.2 percent. The German DAX was up 0.6 percent and the CAC 40 in Paris rose 1.3 percent. The FTSE 100 index in London was 1 percent higher.

"The equity markets are generally rallying in Europe because they are hopeful resolving the political crisis is a necessary solution to resolving the European crisis," said Jürgen Odenius, the chief economist at Prudential Fixed Income.

"The bond market remains bearish on this issue," he added.

The euro was $1.3839, compared with $1.3758 on Monday.

Elisabetta Povoledo and Rachel Donadio contributed reporting.

[Gups]

I'm actually struggling to think of a more consistently incompetent leader of a major western country since the war.

Really?  Italy's macro policies have been reasonable.  I can't think of any truly dumbass economic policies.

The only thing I can think of that Italy botched on his watch was that chica journalista ransom and getaway into an American roadblock.

Berlosconi has been in charge since 2001 (and for a year or two in the late 90s). Italy stagnated between 2001 and 2007 while most of the west saw decent growth and it's fallen off a cliff faster than anoyone else. He's built up a huge debt and had done nothing about the sturctural problems in the Italian economy.

[alfred russel]

I refer you to the Dow Jones' view on Berlusconi's leadership.

I guess markets are conflicted. I came here to post that with yields surging over 7% on Italian debt, the markets think Berlusconi is the best leader Italy is going to get. Which may be damning with faint praise. 

[Viking]

I refer you to the Dow Jones' view on Berlusconi's leadership.

I guess markets are conflicted. I came here to post that with yields surging over 7% on Italian debt, the markets think Berlusconi is the best leader Italy is going to get. Which may be damning with faint praise. 

I think It's more a case of the markets realizing that whatever was necessary to get Silvio to resign is something that they aren't factoring into the price of Italian debt given that they are still lending Italy money. Or... they see this as the first step towards a 50% default like Greece.

[Sheilbh]

Doesn't help that he's pulling a Mubarak.  'I'll resign after passing essential reforms. Honest.' This also doesn't increase sense of stability at all.

[Habbaku]

googling "bunga bunga lorica segmentata" didn't yield any results.. so no pics follow, but history nerds already have the image in their head that I hoped to post here.

A Sopranos episode had Tony engaging in bunga bunga lorica segmentata.   

[Viking]

googling "bunga bunga lorica segmentata" didn't yield any results.. so no pics follow, but history nerds already have the image in their head that I hoped to post here.

A Sopranos episode had Tony engaging in bunga bunga lorica segmentata.   

oh, yes, I remember that....

[MadImmortalMan]

At least the trains ran on time. Or did they?