Here’s the Daily Telegraph’s Ambrose Evans-Pritchard (never the calmest man in the room) on the latest round in the Greek crisis:

Germany has triggered a near-panic flight from southern European debt markets by warning that there will be no EU bail-outs, even though it fears the region’s economic crisis has turned dangerous and could prove “fatal” for the entire eurozone. The yield on 10-year Greek bonds blasted upwards by over 40 basis points to 7.15pc in a day of wild trading. Spreads over German Bunds reached almost four percentage points, by far the highest since Greece joined the euro, and close to levels that risk a self-feeding spiral. Contagion hit Portuguese, Spanish, Irish, and Italian bonds. . . .
However, a key trigger yesterday was testimony in Germany’s parliament by economy minister Rainer Brüderle, who said there would be “no bail-outs” for struggling debtors and no move to a “European economic government”..
Mr Brüderle’s hard line contradicts a report in Le Monde that Franco-German officials are discussing a rescue for Greece in order to keep the International Monetary Fund at bay. The paper cited a source saying that EMU partners were ready to “help” Greece. “It is a question of credibility for the eurozone. The IMF might want to impose monetary conditions.” Le Monde’s story was shot down by Berlin and Paris, but there is little doubt that certain officials have been trying to build momentum for a rescue. It is clear that the EU family is split on the issue. Jean-Claude Juncker, head of the Eurogroup of finance ministers, backs “assistance”, with support of EU integrationists hoping to nudge the EU towards full fiscal union.

The best bet continues to be a bail-out.