Will Berlusconi ever learn? As the Italian Bond rate nears the 7% “danger zone” he seems unphased as usual. He shrugged off questions about it at the G-20 saying “Italy doesn’t feel the crisis” and it is “a passing fashion.” Really?! Italy is the third largest economy in Europe. It is too big to bail out. If Italy fails, Europe fails… That’s kind of a big deal. Even problems in the much smaller Greece could easily thrust the world into another massive recession. Italy’s economy is nearly 3times larger than Greece, Ireland, and Portugal combined. 7% isn’t necessarily a bailout trigger, but it did prompt bailouts of Portugal and Ireland. And through all this Berlusconi shrugs it off. He is the biggest obstruction to getting Italy back on the right track. He faces a vote of confidence on Nov 7th, hopefully the Italians realize what is at stake.

Regards,

Keanan