... we are now approaching the endgame. Officials have not sought to knock down the idea that the Greek default will involve a 50 per cent haircut. We will get a deal on bank recapitalisation. And the EFSF will grow. None of these things will happen because the stock market demands them or even because Germany has shifted policy. It is simply the realisation that they are the only options left.
If only it were that simple. It may (probably) be the case that we will get from here to there, but certainly not without a lot of feet-stamping and tears, especially when the poor bloody French and German taxpayers have to recapitalise those banks which have lent billions to the Greeks.
But it does nothing to correct the imbalances in the eurozone where the German economy grows ever stronger and the Mediterranean club becomes less and less competitive.