Greece

The euro surged on the foreign exchange markets yesterday as Eurozone leaders announced a package of direct loans to bail out Greece.

Today a more sober note prevails. The Royal Bank of Scotland's economics team (you didn't think they had one, did you?) said

“Reaction to the Greek bail-out package can only be described as lukewarm. The market still has some doubt over Greece’s ability to turn its fiscal position around and some investors view the bail-out as only kicking the can down the road.”

As I have said before, unless Greece seriously addresses its uncompetitiveness vis-a-vis Germany, in a couple of years the whole damn thing will happen again.