News from the madhouse, 21st October

Want to know the solution to the Eurozone crisis? If I tell you, you'll keep it to yourself, not tell anyone else? Well it's this: more summits.

Or at least that's what the Eurozone leaders seem to think. The big summit is this weekend, where everything is going to be resolved and the problems made to disappear in a flash.

As I write it is Friday morning and already we have learned that nothing will be decided at the weekend but there will be another summit on Wednesday.

The intention was to solve three issues: the next bailout for Greece, the expansion of the European Financial Stability Facility and the recapitalisation of the European Banks. The three issues are connected and the French and Germans don't agree on any of them.

The markets have bought it, believing that Wednesday will certainly see a resolution of the leaders' differences. I wish I could be so sure.