The weekend's emergency talks on the Greco-German crisis (for all talks on the Greco-German crisis are emergency talks) broke up after 45 minutes. There are those who might suggest that if Europe can only spend 45 minutes addressing the problem, then Europe's leaders do not perhaps understand the magnitude of the crisis.
The German newspaper Bild reports that Europe is now seriously considering the possibility of a Greek default, and the German vice-Chancellor has mentioned the possibility of a Greek exit from the Euro. He did not indicate which other countries he thought would leave after a Greek exit, however.
The US has more important things to worry about, with the FOMC meeting scheduled this week. Time was when June was a candidate for a raising of rates, but a light dusting of snow in the first quarter seems to have prevented that. However a September rate increase is certainly plausible, and may be hinted at this week.
The IMF is visiting China – not with any sinister motive, but to see whether the Chinese currency should be permitted to enter the SDR. In advance of the September decision we believe China has an incentive to maintain currency stability if it can.