Quite a day for the Euro and Italy. I will not repeat all the data sufficiently covered at this time by media all over the world.
Enough to say that Milan Stock Exchange has tumbled 2.53% today going down almost 15% since the start of this year while Italian debt reached a post-EMU high of 6.22pc before retreating a little bit at the end.
Anthony Peters from Swissinvest says large clients have been telling asset managers to eliminate Southern European risk. "They have kissed peripheral Europe good-bye," he said.
In the meanwhile, Italy's president Giorgio Napolitano held a second meeting in days with central bank chief Mario Draghi, the future head of the ECB. There has been speculation in the Italian press that the well-respected Mr Draghi might be called to lead an emergency government to restore market confidence.
Finance minister Giulio Tremonti invoked the country's financial crisis committee on Tuesday as the Milan bourse fell to a three-year low, once again led by bank stocks.
Fiat fell 6pc after an 11pc drop in Italian car registrations in July.
Banks were massacred with total yearly losses for some banks amounting now to 45% in details: Unicredit -5,7%, Ubi banca -5,5%, Intesa Sanpaolo -5,2%, Popolare di Milano -5,04%, Mediobanca -4,59% , Banco popolare -4,3%.
Spain Prime Minister faced with similar losses cancelled his holidays to monitor the deteriorating situation.
You would expect amid all this turmoil that Italian politicians would stay and control the situation as well, right!
Well wrong, they are ready to pack and leave for holidays tomorrow until the 12th of September.
They will assist Prime Minister Berlusconi referring to the Parliament about the recent turmoil on the markets and then insanely will fly away to their holiday destinations.
Berlusconi dealt another blow to the reputation of his government today declaring he wants to be in charge of the Ministry of Finance ad interim practically pushing Tremonti in a corner and putting himself in charge of the Italian economic policies during this major crisis.
The first thought coming to the mind of every investor listening to this news must have been " We are screwed" as for the Catholic Italians it must have been "God Save Us!"
Undoubtedly bad news which require some serious reflection and meditation that is why the motivation brought by the government for such an extended summer holiday is the following:
The President of the MPs for the governing PDL Party Fabrizio Cicchitto replied that his decision to allow for such a long summer closing is due to the September Pilgrimage to the Holy Land where annually over 170 MPs are flocking to meditate and pray.
I join the chorus of astonished Italian citizens praying for a divine intervention we are clearly running out of options here!