For the good of Italy we can only hope that someone is able to put a muzzle to Berlusconi and force him to shut up!
Yesterday in a move that was supposed to calm markets Berlusconi went to the Parliament illustrating his program to restore growth and stability.
In a country where he controls 90% of the media is easy to brainwash the population with his rethoric on how the situation is fine and there are no risks.
Although with mean foreign investors it is a different story and his stupid comments have not helped at all.
If Berlusconi is hell-bent on destroying the country he is certainly doing a great job with his usual stupid jokes and comments such as:
“Markets are lying on the truth and I would ask them to invest in my firms”.
“Since you have money then why not invest them in my company[Mediaset]”
“I don’t believe the crisis will spread further and I am not scared if the spread will stay like now”
“Markets are like broken clocks”
He also dismissed an urgent call from Trichet to start immediate reforms to boost growth and dispel market fears.
In the meanwhile after a “Technical Fault” which blocked Milan, Paris, Lisbon and Amsterdam stock exchanges, the day ended with Milan Stock Exchange down more than 5%.
ECB had to intervene and publicly purchase Italian bonds to avoid today’s auction from failing and start a cascading disaster although the ECB released a note at later stage where it made clear that is not going to purchase more in the future.
Spain had to cancel an auction on the 18th of August and Wall Street is in free fall with more than 500 points down.
Another minor news which could be exploding in the following days and have a major impact on how to solve this mess is the new IMF Chief Lagarde which just as her predecessor has been involved not in a kinky scandal as Strauss-Kahn but in an abuse of power charge. It appears according to French Judges she facilitated a famous French businessman.
The scariest part is that amid all this turmoil the country at the center of the crisis Italy is practically shutting down with no one left in Rome to take urgent decisions and tomorrow could be carnage on the stock markets.
Italian Parliament went on holidays today regardless, although in order to calm the indignation caused by their long holidays and mass exodus to to Holy Land
, they simply managed to shorten their holidays of 1 week so instead of coming back to “work” on the 12th of September will reappear on the 6th of September, of course international markets will no go on holidays and will keep pounding the Italian economy while the government is relaxing on the beach.