Betting On Failure

Speculators are taking a punt on the Euro falling further, as the fallout from the EU's inability to resolve the Greek tragedy continues.

The Euro is now at a nine month low against the dollar, on the basis of low expectations about the result of a meeting tonight between Eurozone finance ministers.

The Greek austerity plan, formulated by the European Commission last week, is viewed by many as not being austere enough.

The problem is exacerbated by the fact that Greece has knowingly understated its true problems (ie fiddled its figures), and that the Greek government is unable/unwilling to take the necessary measures at home for fear of a backlash from the voters.

It is quite clear that Greece did not meet the conditions necessary for joining the Euro, ie it joined it on the basis of fraudulent information supplied to the EU.

Dishonesty has a price, as the Greeks are now discovering.

The best solution may well be to let it rot and be pushed out of the Euro, thus ensuring that further bailouts will not be necessary.