A good post by Krugman here.
Remember the time, not long ago, when the European media uniformly praised the eurocrat and Davos and ECB insider, Mario Monti? He was supposed to “save” Italy. Now he lost the election to MM. Berlusconi and Grillo and this probably will bring down M. Draghi’s ECB “kick-the-can”policy.
For an interesting assessment of the assets and characteristics that make an Italian exit from the euro possible see Ambrose Evans-Pritchard here.
So we are heading back towards the pre-summer situation.
Did you say that the euro was “the biggest macroeconomic mistake since the 1930s”?