From the New York Times' coverage:
“This is the most dramatic moment of our recent history,” Ferruccio de Bortoli, the editor of the Milan daily newspaper Corriere della Sera, said earlier on national television.An economist, Mario Monti, is thought to be his successor but he has the appearance of the market approved candidate and it looks like there is going to be a struggle over that. You go, Italians.
The streets of Rome pulsed with a sense of historic change. Many cheered Mr. Berlusconi’s exit. Outside the Palazzo del Quirinale, the presidential palace, a choir and orchestra performed Handel’s “Hallelujah” chorus.
Also of interest today on this, Nouriel Roubini predicted Italy's fate in 2006.
Meanwhile, our economist is in Hawaii, at APEC, hoping for scraps off Obama's table. Or something like that.