The imminent demise of the Monti government and the thought of Silvio Berlusconi returning as PM...


The imminent demise of the Monti government and the thought of Silvio Berlusconi returning as PM sends Italian investors running into the mountains, with the shares plunging 2.2% and 10-year bond yields spiking 24.5 bps to 4.76%. Those of Spain jump 15 bps to 5.61%. The euro is -0.4% vs the dollar.
Comments (8)
  • untrusting investor
    , contributor
    Comments (9903) | Send Message
     
    Not a surprise, and it might just be start of a much deeper correction.
    10 Dec 2012, 03:16 AM Reply Like
  • Tack
    , contributor
    Comments (16256) | Send Message
     
    European markets won't even be red by day's end, at the present rate.
    10 Dec 2012, 08:58 AM Reply Like
  • bbro
    , contributor
    Comments (11216) | Send Message
     
    I would sell too if there was a chance that windbag got back in power....
    10 Dec 2012, 03:18 AM Reply Like
  • credit_man
    , contributor
    Comments (180) | Send Message
     
    Monti' s tactical move is a dangerous one but in the end it could put him in a stronger seat if central left party(ahead by a good margin in latest polls) puts him in power....
    he is using hopeless berlusconi decision to double up and find a second wind......
    important time.we have 2 cliffs now.........
    10 Dec 2012, 03:24 AM Reply Like
  • mattdaddy
    , contributor
    Comments (52) | Send Message
     
    I'm shocked that they will let him back in power now that Monti has turned Italy around, OK maybe not around but better than before.
    10 Dec 2012, 03:25 AM Reply Like
  • credit_man
    , contributor
    Comments (180) | Send Message
     
    @mattdaddy

     

    who are "they"?

     

    berlusconi has just decided to go for election and monti has made it clear that he will resigned after budget vote as he considers berlusconi s move as a betrayal.
    i think central left will win election and Monti will be put in charge in one way or the other...meanwhile volatility will increase.....
    10 Dec 2012, 03:32 AM Reply Like
  • bob adamson
    , contributor
    Comments (4560) | Send Message
     
    credit-man,

     

    I agree with your basic analysis. Berlusconi currently has about 14% support amongst the Italian electorate and his only potential allies are the Northern League which has many internal problems of its own and could add possibly a further 10%. Arguably Berlusconi and the Northern League are spent forces in Italian politics and their combined 25% support will fade over the next few weeks. In short, Berlusconi is not a creditable electoral threat (arguably he is running out of vanity, a hope that he can leverage what remains of his political notoriety for personal profit and a hope to retain his immunity from prosecution as a Member of the Italian Parliament - this is the flailing about of a drowning man).

     

    The centre-left is clearly ahead and is offering Monti (who is not a man of the Left) the Presidency of Italy if he stays above the upcoming electoral fray. Alternatively, those on the centre-right opposed to Berlusconi may well convince Monti to lead an electoral coalition they are trying to form..

     

    In short, the centre-left alone or in league with other centre groups will dominate after the upcoming election - and Monti will have an important role one way or another. Berlusconi will be sidelined and isolated.

     

    The Five Star Movement (a youth-populist group somewhat like the Pirate Party in Germany) has over the past year filled a vacuum in Italian politics and currently is the second strongest grouping in the Italian polls. Like its German counterpart, however, there is a good chance that their support will fade once the electoral campaign is seriously under way.
    10 Dec 2012, 06:36 PM Reply Like
  • User 509088
    , contributor
    Comments (1702) | Send Message
     
    running into the mountains shouting fangoooooooooool!
    10 Dec 2012, 09:26 AM Reply Like
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