Friday, November 11, 2011

Economy Bell Curve 3D Dimensions; What the U.S. can Ascertain of European Crises

The Hajj that took place, in Saudi Arabia, conditions always get better.  This day of 11/11/11 let us try to make the U.S. better.
It looks like Italy has come up with solutions, that is what articles around the internet are saying.  To the degree of the headline, and the headlines are also talking about 'paving the way' for exit for Silvio Berlusconi.

The way to handle writing this article, is, instead of trying to be the savant sitting atop the clouds with the answers, to ask some questions, which standard historians and economic advisors know the answer to, such as a Senior professor at a top notch university.

The whole method, of we have a crisis, now we need a bailout, or the prospect of one --  okay, like, according to this excerpt directly below this paragraph, when investors see an economic downturn, and that is enough to get the ball rolling downhill for the economy.

"Italian bond yields are soaring to incredibly dangerous levels, and now the yield curve for Italian bonds is turning upside down.  So what does that mean?  Normally, government debt securities that have a longer maturity pay a higher interest rate.  There is typically more risk when you hold a bond for an extended period of time, so investors normally demand a higher return for holding debt over longer time periods.  But when investors feel as though a major economic downturn or a substantial financial crisis is coming, the yield on short-term bonds will often rise above the yield for long-term bonds.  This happened to Greece, to Ireland and to Portugal and all three of them ended up needing bailouts.  Now it is happening to Italy and Spain may follow shortly, but the EU cannot afford to bail out either of them.  An inverted yield curve is a major red flag. " [ http://theeconomiccollapseblog.com/archives/tag/italy ]

Question: Why did investors feel that the economy was on its way to a downturn?

Before yield returns, why do investors feel a downturn is coming?

Considering that in constructs like today's Italy, societal, and all the people there, there are many Italians that know a lot of information about keeping a prosperous economy, or making amounts of money that would make financial giants like MicroSoft, ABC television, Disney, to name a few, jealous, [but they don't actually do it, and start acting like that].  This given, and that Berlusconi probably does not act all by himself,

Question: Is Berlusconi, present or absent, or any gradation somewhere between, the crux of the economic woes, rise, or solution to the entire Italy economy?

Why?

Also, remember the banking houses and dynasties that have their histories in Italy stemming from what is with respect to World War One and Two.  Without going into detail, there were the Fascism regimes, banks that got overturned, banks that were critical to the economy, and these lines. 

At the end, as the solution, one bank, or another, provided enough that Italy could stand on its own feet without any else's help.  If Italy can find its own solution, why does it need a bailout from the 'Eurozone'?

So-- we reiterate a paragraph already stated, the whole method, of we have a crisis, now we need a bailout, or the prospect of one-- okay, like, according to this excerpt, when investors see an economic downturn, and that is enough to get the ball rolling downhill for the economy.

Is it just the style of the times?

Headlines around the internet for today, are that the Italian Senate approves the reform...; now how does that have anything to do with paving the way for Berlusconi exit?

Before stringing together the elements that 'pave this way', there is what begs the question, why 'pave a way', why not just have Berlusconi leave, or resign, which seems apparent, or move to a different seat and be on a panel of some kind?

A quote on the process of reform,
"The 156-12 vote took place after respected economist Mario Monti - widely expected to become the interim prime minister - was welcomed with applause in the Senate chamber, where he was officially designated senator for life.


Italy's president bestowed the title on Monti two days earlier to signal to roiling financial markets that he intended to ask the 68-year-old former European commissioner to try to form a transitional government after Berlusconi leaves office."
http://www.signonsandiego.com/news/2011/nov/11/italian-senate-approves-economic-reform-bill/

[waive-wave in one of the captions]

Monti was established as Senate for Life, anent [context choice of word] the reform for the economy, and that evidently is what paves the way for the exit.




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