I thought this was a bit of the “pot/kettle” sort of funny.
For those who haven’t heard, Italy is having another one of its political messes…..again.
ROME (AP) — Premier Mario Monti told the Italian president Saturday he is resigning soon, saying he can no longer govern after Silvio Berlusconi’s party withdrew crucial support. It paves the way for early elections a year after the unelected economist helped pull the country back from the brink of financial disaster.
Only hours earlier, Berlusconi announced he would run for a fourth term as premier, aiming for a dramatic comeback, considering the billionaire media baron quit in disgrace in November 2011.
Well, I’m not sure Italy has stepped completely away from the brink of financial disaster, but, they are in a slightly better position than they were a year ago.
These events have and will reverberate for a moment in some markets. Spain says this is going to hurt them. And, to a point, it will.
MADRID (Reuters) – Spain will suffer a contagion effect from Italy’s new political turmoil and the government continues to study the need for outside assistance, Spanish Economy Minister Luis de Guindos said on Monday.
Spain’s risk premium over Germany rose to 436 basis points on Monday after Italian Prime Minister Mario Monti announced he would resign and trigger early elections. The 10-year Spanish-German spread was up 20 basis points from Friday but still well below highs of over 650 bps hit in July.
“Every time there are doubts … for example today in the case of Italy, when there are uncertainties about the political stability of a neighboring country such as Italy, that immediately affects us,” de Guindos said in an interview with the Spanish state radio.
There’s only a couple of problems with these statements. Spain’s politics aren’t exactly seas of tranquility. Heck, over there they have an honest to goodness succession movement. Further, this pretends that Spain’s economic condition occurred by happenstance. Germany seemed to fair better regarding Italy’s turmoil. It isn’t like Germany is on the other side of the world from Italy. No, you’ll have to find a map yourself!
Anyway, I thought it was cute, in a sad and pathetic way. So, I had to share.