Reuters finance blogger Felix Salmon and Marketplace New York bureau chief Heidi Moore went on "The Madeleine Brand Show" this morning to discuss the ongoing (Neverending?) European debt crisis. It was a lively discussion, moving beyond the probability of a Greek default in its debt and raising the specter of Italy defaulting on its debt — or more accurately, being unable to "roll it over," or pay off maturing bonds with new bonds, at the same interest rate. Unfortunately for Italy, its borrowing costs are going up, making it difficult to execute this maneuver.
At one point, Heidi made reference to a video of French President Nicolas Sarkozy and German Chancellor Angela Merkel, the odd couple of the European Union, who together have been lurchingly trying to cobble together a rescue package for the Eurozone's common currency.
I believe the video she's talking about is above. You can see what Sakozy thinks of the prospect that Italy, in the reality distortion field of Prime Minister Silvio Berlusconi, will go along with anything that Germany and Italy propose. One snicker and a wordless glance says it all.