Mr Profumo’s high risk profile is still there (un delirio di onnipotenza da manager-dinosauri del millennio passato: speriamo che la crisi ne spazzi via un bel po’ – a questo serve!).
Although, meanwhile, the Bretton Woods institutions have spent some hundred billion $ to stop the CEE domino & save Center – East CBs, the private ones and their Western owners (like Unicredit). The tragi-comic is that, while they stick to XX Century ultra-neolib (bullshit, or Great Narration if u like it), the ex-Socialist countries have been saved only by …
Internationalist Financial Socialism: the 6th Socialist International, more or less.
AHAHAH! I.e., the XXI Century form of a Communist “spectre of Marx” (Derrida).
They didn’t deserve all that, with our money, stability pursuing and hard work, the bastards: should have tasted the mud of what is pure capitalism at grapes-of-wrath times. Such idiots, still thought-prisoners of their slave socialist past (better IMF to pay shrinks to all of them: value for money), paranoic ultra-“lib” (sorry to use such a nice name & HIGH thought tradition, Einaudi – Hayek etc., for their ideological credos denying even the existence\nature of a global REAL crisis, and of course not begging pardon for a crazy management of their unsustainable fast growth):
CEE leaders didn’t deserve a penny, for their thoughts.
But so goes globalisation – what make a difference from begga’ yo’ neibo’ (Keynes’ bestia nera) in the former GreatDep, is that there is little room for it now, at GreatDep 2 times.
IMF comes to save East Europe to save Mr Profumo, Italy’s monster public debt and the € zone stability. By the way, LEX (below) is right: private debt/GDP ratio is somehow half in Italy compared to the US. What he doesn’t say is that Italy’s sickness has a name: Tremontite. Only Italy spends 0 for fiscal stimuli (as if we were …Austrians, no Risorgimento!): Giulio had the courage and determination (I believe he likely ended his fast power career here, because of that) to choose to re-equilibrate what matters most to Berlin, Bruxelles, Frankfurt and London markets, i.e. the public debt/GDP ratio, at a very low GDP level, instead of pushing the GDP earlier, in 2007-2008, in order to allow now for more fiscal manoeuvre (less taxes and\or more infrastructures, what China, the US etc. are doing, to match the powerful monetary policies that have succesfully controlled, “un-powered” the stagdeflation cumulative spiral until now).
Yesterday Emma Marcegaglia, speaking in the name of all the Italian entrepreneurs, expressed all their frank, growth-professional dissent from Tremontite Malthusanism, but too much A BASSA VOCE to have any impact whatsoever: no blackmail, no electoral boycott (like: we’ll all vote Casini). There is another illness at work here, Berlusconite; Emma has not yet a full power on her syndicated patrons, even if the Cavaliere consensus has never been so low among the Italian bourgeoisie & industrialists – now beginning to call for a true right and centre-left, out of this stallmate depriving Italy of a guide at harsh times, while FIAT goes to its worldwar and can manage with its own Foreign Affairs, but the small businessmen ecologies? They are just lost & abandoned to themseleves – i.e. the ones who were the Cav. fans until now – but not any more: for elementary, Darwin-Schumpeterian survival reasons. It’s a POLITCAL divide, from the unmanaged crisis about to decimate the SMEs.
There is an empty space, at the centre of Italy’s political arena, for a new political force representative of the middle classes, the high bourgeoisie and repressed high tech animal spirits!!! La DC? A new entry (Montezemolo)?
You measure here ALL the tragic, historical failure of Berlusconi who WAS really, as he knew (was told, by don Gianni) and told, l’Unto del Signore called for this middle cass re-assembling Mission. But he miserably failed it: 100%, for a number of reasons. His era already belongs to the past; a mere cohincidence: the death of the great political teologist and teological political scientist, don Gianni (a sublime figure for his teaching and thought, widely appreciated by a transversal audience; and a nitzschean Superman indeed, in his indomable adventurist impetus: from “anti-Pope” Card. Siri, to Craxi and the Cavaliere). Unforgettable don Gianni Baget Bozzo! Riposa in Pace.
Published: May 14 2009 09:17 | Last updated: May 14 2009 20:49
Italy is still sick. Its economy has suffered a series of recessions over the past decade. Yet its labour market remains inflexible and deeply uncompetitive; since 2000, Italian labour costs have risen by 45 per cent. Productivity has also stagnated, while rising annually on average by 1 per cent in the eurozone. As a result, Italian exports – from capital goods to shoes – have suffered particularly badly in this slump. Yet Italy also lacks many features of the credit boom that have ravaged other countries. While government debt is scarily high, at more than 100 per cent of output, household and corporate debt is low. Nor has there been much of a housing boom.
This halfway happy result is reflected in the relative good health of Italy’s two biggest banks, UniCredit and Intesa Sanpaolo. Neither has yet taken government money. Both are funded by large deposit bases. Both are among Europe’s most efficient lenders. And both are still reporting healthy profits. That, though, is where the similarities end. Almost 90 per cent of Intesa’s business is in Italy. UniCredit, by contrast, has sought to escape domestic economic stasis by taking more than half its business abroad. This aggressive foreign expansion, especially into central Europe, has lately taken Unicredit’s share price on a wild ride. (…)
And, from May 11 ft on Poland postponing euro entry –http://www.ft.com/cms/s/0/e4bf38a8-3e52-11de-9a6c-00144feabdc0.html – Marchionne / Profumo 6-0, 6-0, 6-0.
In one example of mixed signals, Fiat’s factory in southern Poland is churning out small cars for the west European market, and is not planning production cuts.