Italy's Bersani Fails To Form Government

Tyler Durden's picture

Surprise!

  • *BERSANI TOLD ITALY PRESIDENT HE CAN'T FORM GOVT
  • *BERSANI SAYS HE FACED UNACCEPTABLE PRECONDITIONS FROM PARTIES

and so,

  • *BERSANI: NAPOLITANO WILL CONTINUE TO EVALUATE POSSIBLE OPTIONS

Leaving the door open for the possibility of a 'caretaker' or technocrat government but most likely - new elections (and given the increased support for Grillo, this could be yet another storm in a teacup for the US markets to shrug off).

While this scenario was an absolutely certain outcome, here are the possible next steps via OpenEurope:

Bersani throws in the towel and hands his mandate back to President Napolitano

 

This wouldn't automatically mean new elections - which, in any case, can only be called by the new Italian President when he enters office in mid-May. Napolitano would have to start a new round of talks and then decide what to do. As we explained in previous blog posts, the most likely outcome would be the Italian President proposing a temporary 'national unity government'.

 

The new cabinet would be led by someone from outside of 'traditional' party politics (the word 'technocrat' seems to have gone out of favour in Italy these days) - but the ministers could indeed come from political parties. It is unclear whether Berlusconi's party would grant its support, but this solution may have some chances of winning the Five-Star Movement's backing. This 'national unity government' would pursue a clearly limited agenda, and pave the way for early elections - perhaps as early as next year, but with a new electoral law.

 

It's all very much up in the air in Italy at the moment, but in case of a definitive breakdown of talks everyone will suddenly be reminded of which country should be the eurozone's real concern.  

Sadly, not with GETCO's no-volume levitation algos now left in charge of the "market", "everyone" is more likely "no one."

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jeebus's picture

Bullish. What's that silver and gold are worth less than they were yesterday? Weird.

Long-John-Silver's picture

and still in your possession (unless you hold paper).

Flaming Ferrari's picture

What's iTtaly? A new Apple gadget? Bullish.

dreadnaught's picture

ITALY: I Trust And Love You      ;)

fonzannoon's picture

they will install a technocrat to oversee things until Beppe dies of natural causes.

 

Id fight Gandhi's picture

Government? I ain't got time for that.

PUD's picture

Well it's not as bullish as mushroom clouds over Korea but it's still pretty fucking bullish...I mean not as bullish as Italy defaulting but bullish none the less

WTF_247's picture

Algo's ready to go all-in long on this good news.

Buy programs in queue, volume ready for massive jam to +12 on ES

Long-John-Silver's picture

Italy will be Cyprus II. Not only do they take everyone’s money, they take control of it's government too.

Urban Redneck's picture

Unlike Cyprus, Italy has more gold than Germany. (unless you consider an 7-year IOU from Bill Dudley to be gold)

 

 

fonzannoon's picture

is it me or is it like a funeral home on here right now?

Long-John-Silver's picture

It's like the family in the waiting room waiting for the doctor to sign the death certificate.

McMolotov's picture

It's easy to get burned out, especially since Cyprus hasn't brought the whole thing down the way many of us anticipated/hoped.

fonzannoon's picture

it takes real effort to finally break from the belief that the economy and the market is in any way linked. What happened in Cyprus is a huge deal. Think of the positives that came out of it. The blueprint was unveiled and the system did not collapse. That means anyone with more than 3 brain cells now knows they need to take their assets back before their turn on the list. the more of us that do it, the better off we all will be when it happens.

Forget about waiting on a market crash. it ain't going to happen. I mean that. never going to happen. you will wake up one day and turn on your tv and the emergency broadcast service will be on every channel. there's your correction.

valley chick's picture

can't stay in stall speed forever.....or can we?

fonzannoon's picture

stall speed is like the middle class. it does not exist. a few people are going 100mph and the rest are crashing down to earth. You are either one or the other, or you will be soon.

valley chick's picture

and I bet you are a blast at parties too.  ;)

fonzannoon's picture

The article above about beppe quotes him as saying "this is like the truman show...theatre for the absurd".

I find that amazingly accurate and while I try to maintain my sense of humor about it, I would concede that whatever humor I have left is probably not the happy go lucky type.

I have a 3 year old however that is my anchor. She knows good old fashioned comedy and it's what keeps me in the game.

PS if u have cnbc and like comedy watch this guy lee mustard that just came on.

valley chick's picture

the irony of the truman show.  One I use often to friends to explain what is going on around them except at the end where they cheer him on to open the door and leave ...I tell my friends that the door is locked and I want the hell out. 

fonzannoon's picture

yeah the part where he is on the boat and crashes into the wall in rough seas and realizes everything. I am on the boat and it's rough and i keep getting further and further out and yet still no wall, andnow it's too far out to turn around. 

luckily it's a huge boat and all of us are on it.

McMolotov's picture

You've totally put my mind at ease...

fonzannoon's picture

i figured that would do it.

centerline's picture

I was thinking about this yesterday.  Instead of financial cracks, I think we start seeing social/civil unrest first.  Protests, then protests getting ugly, vandalism, pockets of increasing violence and aggression.  The "process" of sovereign debt failure will happen on Main Street, not Wall Street.

When the market finally crashes, like you said, it will be an "event" instead of a process.

fonzannoon's picture

you have a chance to read "The long walk" yet centerline? I'm curious what you thought.

centerline's picture

Not yet.  But, believe it or not, I have the name written down on a index card that is in my wallet in order to bug myself daily to stop at the book store.

I really need to stop this weekend and get that book. I will definately let you know what I think as soon as I read it.

Mordenkainen's picture

You can say "This is complete bullshit!" only so many different ways and so many times.

SpiceMustFlow's picture

Long Beppe, every time this gets delayed he will get stronger. The force is strong with this one.

WTFRLY's picture

the euro's about to die, sliced like a pizza pie, that's amore

jubber's picture

Zero reaction, unreal

LawsofPhysics's picture

Has there ever been a real "government" in Italy?  Just saying.

bnbdnb's picture

Who cares? Ctrl-p.

Bam_Man's picture

Their Napolitano is better looking than our Napolitano. 

And he's over 80 years old!

kralizec's picture

It's Italy, this is one of the most recycled headlines in their inventory. 

SheepDog-One's picture

Nevermind, it's all good...BUY STAWKS!

mayhem_korner's picture

 

 

Grey swan parmigiana, muppetz.

Piranhanoia's picture

"BERSANI SAYS HE FACED UNACCEPTABLE PRECONDITIONS FROM PARTIES"     He can't form a government based upon law, or the demands of a majority of voters.  Says it all.

Ourrulersknowbest's picture

Grillio may be right or wrong.i just don't know.all I know at this point is something different has to be better.
Not a great way to form an Informed political opinion,I know but I am so sick of the shit we've put up with to this point.

ArgentoFisico's picture

Parmigiano Reggiano (or Grana Padano)

http://storage.parmigiano-reggiano.it/view/1000/grattugia-parmigiano-reg...

The one and only! No "parmisan" shit

 

NoWayJose's picture

The longer that capital controls stay on in Cyprus, the better it will be fir Grillo. The Troika are walking a narrow tightrope between loss of confidence with keeping capital controls on too long, versus bank runs by removing them too early.

jubber's picture

Italian futures now at AH highs !

They Tried to Steal My Gold's picture

Nominate...... THE GREAT PIZANI 

Bob Pisani seems to have all the answers...and he tells his audience everything they want to hear.

 

 

http://media4.s-nbcnews.com/j/MSNBC/Components/Video/130201/x_dc_nn_bobp...

 

 

 

 

dunce's picture

I am strarting to admire the way they limit government. A government capable of functioning will not do the right thing so it is better that they do nothing.

Fips_OnTheSpot's picture

So nice he waited with that until closing "market". I give this shitshow another four weeks, then re-election announced for somewhat July. Poor Monti ;-)