Sometimes I think I'm too cynical. But if this exchange on Dr. "Doom" Nouriel Roubini's twitter feed is to be believed, I guess I'm not cynical enough.
Berlusconi says: "It isn't blasphemous to exit the Euro" signaling the he/his party & powerful business interests want to return to the Lira
— Nouriel Roubini (@Nouriel) June 21, 2012
Berlusconi outburst confirms what I wrote in my last paper:powerful business/politcal lobbies in Italy favor Euro exitbit.ly/Md57XF
— Nouriel Roubini (@Nouriel) June 21, 2012
@Nouriel Presumably they have moved their cash out of Italy already and would relish the chance to buy up the country after a Euro exit
— FaridAnvari (@FaridAnvari) June 21, 2012
@Nouriel As Monti becomes less popular and reforms bite, Berlusconi will come back out of shadows; Leaving euro will be his signature issue
— Mark Dow (@mark_dow) June 21, 2012
@notanna1 @Nouriel Not saying he'll make it; saying he'll try. And questioning the Euro (either for leverage or exit) will be his issue
— Mark Dow (@mark_dow) June 21, 2012
@lucagenoves @Nouriel Overwhelmingly Italians want to stay in. This will change as growth stays negative & someone packages an alternative
— Mark Dow (@mark_dow) June 21, 2012
Roubini also lists the threats to the world economy in the doom-alicious A Global Perfect Storm that risk making 2013 into an especially 'lucky' '13.
- Synchronized slowdowns in economies of Europe, the US and China
- Political transition in China and elections in the US
- Continued political risk in the Middle East, especially concerning Iran
- Monetary policy depleted and fiscal stimulus limited by already high debt
Update ...and right on queue, the WSJ opines on Berlusconi's Latest Clown Act Italy's former prime minister turns populist euroskeptic. Too bad he never delivered on promised reforms.
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