In essence, Germany and France are staring into the ERM crisis, John Major style,and willing it to go away.
Its a test of credibility and recent statements from Merkel and Sarkozy haven't been credible. "Greece is integral to the Euro."
Any cash to put behind those "the future of Greece is in the eurozone"' words?
Peston says " ..we will have to see whether Franco-German-Greco solidarity, that isn't backed up by hard cash, succeeds in staunching the flow of money out of Greek banks, and the total boycott of lending to the Greek state.
This emptying of Greek banks' coffers has shown that both professional investors and ordinary people are not prepared to wager that the euro is forever in Greece.
On current trends, the European Central Bank (ECB) will end up financing every single past and future loan made in Greece, because when cash leaves Greek banks, it has to be replaced by emergency loans from the eurozone and Greek central banks."
This can't go on indefinitely. The euro leaders need to get the damn balloon down before it goes bang, taking the Greeks, the eurozone and us with it.