Frankly speaking: I don't understand The Germans anymore. We are heading more and more towards a catastrophic crises, but the in Berlin continues to play it's masochistic game of doing too little too late.
This morning the CDS spreads of France and Belgium reached with 200 respectively 300 basispoints peaks never seen during the Euro era. That means that the cost to insure against a default of these countries has neve been so high. On top France risks now a lowering of it's credit rating outlook from Moody's, which could be the first step to withdraw the country it's AAA rating in the next 12 months or so. What does that all mean?
Whoever thought that the Euro crises would be a isolated regional event of some profligate southern countries like Greece and Portugal, maybe also Italy and Spain, has been proved wrong. The Euro crises is a crises of the whole Euro-zone. Useless to point the finger on certain countries, that behaved wrong in the past. We are in one boat and we have to make sure that this boat will not sink.
When France and Germany announced to postpone their decisions in terms of crises solution mechanisms to this weekend, the hope was nurtured, that they would really start to think big. Yesterday's statements from Ms Merkel and Mr Schäuble said the contrary: don't believe that the crises on Monday will be over. As if this would be a bad news!
Don't take me for naïf. It is clear that the Franco-German tandem cannot fix all the problems, that occured in the last two decades with one announcement. But they could show the world (and the distrustful markets), that they have really started to understand the dimension of the problem. Apparently they prefer to continue to muddle through the middle.
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