Recalling the decision made:
Napolitano, whose term ends on May 15, acknowledged that he had limited scope to force the divided parties to find a way out of political situation that he said was “frozen between irreconcilable positions”. The Italian President said he would ask two small groups of experts to formulate proposals for institutional and social and economic reforms that could be supported by all political parties. He named 10 senior figures “the wise men”, including Enrico Giovannini, the head of statistics agency ISTAT, European Affairs Minister Enzo Moavero Milanesi and Bank of Italy board member Salvatore Rossi as well as one senior figure from each of the main parties apart from the anti-establishment 5-Star Movement.
Will the price tag on this political extravaganza absorb the blackout of the Italian representative democracy?
Italian elections have delivered a political fragmented country, where political parties are unable to bring forward the country interests before their own. Thus, the Italian President faced a tough decision: to step down so to speed up the process that would have brought the Country to new elections or pursuing the “wise men” road therefore to continue with his mandate until the last day.
Political commentators wrote during the weekend that the call from Mr. Draghi aimed to direct the Italian President’s choice “on the right one” for the market.
I have a problem here:
First of all, we have a man Mr Draghi who knows exactly what it’s right for the market.
Second, we got a country whose President, elected by the political parties not by its own citizens, obey to a man who says to know what it’s right for the market.
Is there a “bubble” in the don’t fight the Fed statement?
The “buying time” strategy has worked up to know so there is no reason to not follow this route.. it’s like applying the principle of Mathematical induction:
If it is known that (1) some statement is true for n= 1 (2)assumption that statement is true for n implies that the statement is true for (n+ 1) then the statement is true for all positive integers.