14 September 2011

Der Vogel strauss*

Now it's getting serious. The Independent reports:

Loose talk costs lives. Broadly, that is how one would sum up the contents of the interview which was given by Angela Merkel to German radio yesterday. Unfortunately, denial remains the most appropriate word for the Chancellor's ongoing approach to the eurozone crisis. The capital markets now put the chances of a Greek sovereign debt default at 98 per cent, yet Ms Merkel yesterday chose not to address that fear.

Instead she rebuked those members of her own government who have had the nerve to talk openly about how to handle a Greek default in recent days. If no one talks about it, she seems to think, it will not happen.

And that was before we learned of the downgraded credit ratings of two French banks. It increasingly looks likely to end in tears.

* = ostrich

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