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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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Thu, 03/28/2013 - 14:25 | 3386080 jeebus
jeebus's picture

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

Thu, 03/28/2013 - 14:33 | 3386108 ParkAveFlasher
ParkAveFlasher's picture

Still shiny.

Thu, 03/28/2013 - 14:35 | 3386119 Long-John-Silver
Long-John-Silver's picture

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

Thu, 03/28/2013 - 14:26 | 3386086 Flaming Ferrari
Flaming Ferrari's picture

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

Thu, 03/28/2013 - 19:47 | 3387227 dreadnaught
dreadnaught's picture

ITALY: I Trust And Love You      ;)

Thu, 03/28/2013 - 14:27 | 3386088 fonzannoon
fonzannoon's picture

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

 

Thu, 03/28/2013 - 14:27 | 3386089 Id fight Gandhi
Id fight Gandhi's picture

Government? I ain't got time for that.

Thu, 03/28/2013 - 14:30 | 3386100 PUD
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

Thu, 03/28/2013 - 14:32 | 3386104 WTF_247
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

Thu, 03/28/2013 - 14:33 | 3386111 Long-John-Silver
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.

Thu, 03/28/2013 - 15:00 | 3386237 Urban Redneck
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)

 

 

Thu, 03/28/2013 - 14:35 | 3386117 fonzannoon
fonzannoon's picture

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

Thu, 03/28/2013 - 14:38 | 3386131 Long-John-Silver
Long-John-Silver's picture

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

Thu, 03/28/2013 - 14:38 | 3386132 McMolotov
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.

Thu, 03/28/2013 - 14:45 | 3386170 fonzannoon
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.

Thu, 03/28/2013 - 14:48 | 3386182 valley chick
valley chick's picture

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

Thu, 03/28/2013 - 14:53 | 3386203 fonzannoon
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.

Thu, 03/28/2013 - 14:57 | 3386230 valley chick
valley chick's picture

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

Thu, 03/28/2013 - 15:03 | 3386257 fonzannoon
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.

Thu, 03/28/2013 - 15:09 | 3386274 valley chick
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. 

Thu, 03/28/2013 - 15:12 | 3386289 fonzannoon
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.

Thu, 03/28/2013 - 14:49 | 3386187 McMolotov
McMolotov's picture

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

Thu, 03/28/2013 - 14:52 | 3386197 fonzannoon
fonzannoon's picture

i figured that would do it.

Thu, 03/28/2013 - 15:09 | 3386279 centerline
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.

Thu, 03/28/2013 - 15:17 | 3386303 fonzannoon
fonzannoon's picture

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

Thu, 03/28/2013 - 15:39 | 3386388 centerline
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.

Thu, 03/28/2013 - 14:39 | 3386133 Mordenkainen
Mordenkainen's picture

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

Thu, 03/28/2013 - 14:35 | 3386120 SpiceMustFlow
SpiceMustFlow's picture

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

Thu, 03/28/2013 - 14:35 | 3386122 williambanzai7
williambanzai7's picture

BILDERBERG BOOGEYMAN

Thu, 03/28/2013 - 16:55 | 3386749 WTFRLY
WTFRLY's picture

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

Thu, 03/28/2013 - 14:35 | 3386123 jubber
jubber's picture

Zero reaction, unreal

Thu, 03/28/2013 - 14:44 | 3386166 LawsofPhysics
LawsofPhysics's picture

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

Thu, 03/28/2013 - 14:45 | 3386169 bnbdnb
bnbdnb's picture

Who cares? Ctrl-p.

Thu, 03/28/2013 - 14:45 | 3386172 Bam_Man
Bam_Man's picture

Their Napolitano is better looking than our Napolitano. 

And he's over 80 years old!

Thu, 03/28/2013 - 14:47 | 3386177 kralizec
kralizec's picture

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

Thu, 03/28/2013 - 14:51 | 3386193 SheepDog-One
SheepDog-One's picture

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

Thu, 03/28/2013 - 14:55 | 3386222 mayhem_korner
mayhem_korner's picture

 

 

Grey swan parmigiana, muppetz.

Thu, 03/28/2013 - 15:00 | 3386238 Piranhanoia
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.

Thu, 03/28/2013 - 15:00 | 3386243 Ourrulersknowbest
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.

Thu, 03/28/2013 - 15:03 | 3386248 ArgentoFisico
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

 

Thu, 03/28/2013 - 15:24 | 3386334 NoWayJose
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.

Thu, 03/28/2013 - 15:37 | 3386374 jubber
jubber's picture

Italian futures now at AH highs !

Thu, 03/28/2013 - 16:31 | 3386651 They Tried to S...
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...

 

 

 

 

Fri, 03/29/2013 - 00:13 | 3387781 dunce
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.

Fri, 03/29/2013 - 04:17 | 3387937 Fips_OnTheSpot
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 ;-)

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