CRASH 2: Markets give up on Italy, close to giving up on eurozone talks.

Italian Bond rates reached a level around late morning today which, says a tried and tested software program used by wealth managers in the UK, means markets are pricing them on the basis of 100% certainty of insolvency without a bailout.

And so far this evening, there is nothing emerging from either Berlin or Paris to suggest the likelihood of anything near expectations of the eurozone crisis summit outcome being realised.

Meanwhile, close Merkel adviser Jeremy Rifkin is arguing that record oil prices in 2008 pushing up the costs of everything from food to clothing caused the credit crunch – rather than the collapse of Lehman Brothers Holdings Inc. If he’s her chief adviser, then God help us all. Because it is utter and complete bollocks.

It would be nice to think that Mr Rifkin was giving her some practical advice, rather than floating hare-brained theories. But the economists are, as always, full of speculation about the past, and devoid of ideas for the future.