King Canute

There was much excitement in the financial world yesterday as the Euro collapsed following a relentless stream of negative news on Greece and Portugal. Things are a little brighter today (ish) after the IMF talked about increasing the bailout size, however Germany is clearly still not overly keen on helping the Greeks out, and who can blame them.

There is a monumental amount of denial going on here though. Even if Greece is bailed out, it won't solve any structural problems, but merely buy some time. This time will be used to spend the bailout money, and we'll be back in the same boat as before, but this time 60bn Euros poorer, and with Portugal and Spain also on the brink.

The whole thing looks to me like trying to push the tide back. Eventually, no matter what you do, you'll be like King Canute, up to your neck in it. Better not to spend the money in my view. It's actually quite hard to see how we're going to get out of this one really. I just hope there's some bailout money left for the UK!