Robert Peston may have a funny way of speaking but he does seem to have a good grip on the Euro crisis. He is very pessimistic about the long term outcome. See Here
From the look of it, Portugal is already on the slide with bond yields already at 7% (Irish bond yields are still at over 8% and that is after the bailout package). Obviously those who buy bonds are none too confident that their money is safe and the rate has been cranked up to appeal to their greed rather than common sense.
So at what point do the Germans chuck their hand in?
They, after all are the only reason the whole thing has not collapsed already. Greece and Ireland are the smallest of the sick men of Europe. It has been difficult enough as it is.
God help us all if (say) Spain or Italy went down. If Portugal fails to make it through the next two weeks without holding the begging bowl out I cannot see the Germans continuing to issue blank cheques.
Going back a few months, when this crisis first broke out I picked up a report that Germans were closely examining their high denomination Euro notes. Evidently you can tell which country printed what. The report stated that the rattled Germans were only accepting notes printed in Germany.
I don't expect anything has changed.