Markets' chilling message on euro
Yesterday's failure of the German government bond auction, where that country's central bank, the Bundesbank, was forced to purchase 40pc of the 10-year bonds being sold when investors shunned the €6bn sale marked a further ratcheting up of the euro debt crisis.
The crisis that started on the eurozone periphery more than two years ago when the newly elected Greek government confessed that the country had been cooking its books for years has finally infected Germany, Europe's largest and most prosperous economy and, until yesterday at least, widely thought of as the single currency's rock-hard core.
Maybe it had to come to this. Ever since October 2009 when the newly elected Greek government came clean on the fiscal fraud perpetrated by its predecessors, Europe's leaders have steadfastly refused to seriously engage with the ever-escalating crisis.