Berlusconi Is Getting His Revenge — The Italian Market Is Getting Destroyed

silvio berlusconi note resignation 2

[credit provider=”AP/Andrew Medichini”]

Markets are down.US futures are down modestly.

Much of Europe is off hard.

Spain is down 1.7%.

Germany is off 0.5%.

France is off 0.6%.

And Italy… down 3%.

Bank stocks in Italy are down over 5%.

The big story of the weekend is the rising political chaos, although it’s arguably overblown. Mario Monti will resign after passing a budget, and Silvio Berlusconi will run. Berlusconi’s chances are considered to be tiny, but in a recovering financial state, any disruption hurts. Borrowing costs in Italy are jumping.