Italy has new government.

Two months after the election, Italy has managed to cobble together a new government. It is an uneasy coalition between the left wing Democrat Party and Berlusconi's party. Beppe Grillo and his fellow crazies are left out:


http://online.wsj.com/article/SB10001424127887323528404578450350631741768.html

It is too early to comment on the possible success or failure of this govt. Italy's indebtedness now stands at 127% of GDP, so by the Rogoff hypothesis it has gone past the point of being able to rehabilitate itself without sinking into hyperinflation. While, the WSJ editorial is full of hopeful phrases, we will have to see how the Left and Right can work together. Past experience tells us that it will be a very uneasy coalition. How long will it last? I would not bet on it.