A few days ago, I posted on the political problems Europe is having in managing the Euro. I argued that the core problem is that there is no firm European consensus on what the Euro is and therefore no firm commitment to protect it. Here is a link to that post. Today, NYT notes that speculators are starting to bet against the Euro and focus their attention on Portugal. Here is the link. Here is a quote
Some analysts think the Greek bailout may have … (a) harmful long-term effect. Instead of ushering in a period of lower rates and market calm, it could prompt investors to test Europe’s — and in particular Germany’s — stomach for a rescue of other troubled European economies, beginning with Portugal.
Oh dear. Dreadful. Simply dreadful. But predictable.