Posted on Sunday, 27th November 2011 by Charles Melvin
Italy’s Premier Silvio Berlusconi resigned his 17 year long tenure early last week, signalling the end of an era for a country which is now struggling under the weight of $2.6 trillion of Government debt.
If Italy collapses, economists predict large parts of Europe will enter a deep recession, likely to also spell the end of the 17 nation Eurozone experiment.
Australia is unlikely to escape the fallout – the Eurozone is China’s largest export market and in turn, China is Australia’s largest trading partner. Banks may also be forced to raise interest rates regardless of the Reserve Bank’s actions if the cost of offshore financing increases amid potential massive debt write-offs.
Domestically, an RD Data report shows Melbourne vendors are dropping their asking price by as much as 25% in some suburbs to secure a sale. The volum