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The great and the good in Davos yesterday all denied that Greece was about to default on its public debt, sell a chunk of it to China or leave the eurozone. The newly elected prime minister, George Papandreou, said his country was being targeted by speculators and was capable of raising money on the markets. Germany and France denied a report in Le Monde that they were considering giving Greece extra help, as the cost of insuring government debt leapt this week. Even billionaire George Soros, who has bet against countries in the past and won, was confident that Greece would make it.

This was more than just a rumour mill. Greece has to sell €53bn of debt this year to reduce its budget deficit, which is the largest in the EU, and the bond markets are not unnaturally sceptical...