(TELEGRAPH) — For all Angela Merkel’s tough talk, she will eventually be forced to accept the inevitable on the euro crisis.

One of Davos’s more amusing characteristics is that it can be used as a quite reliable contrary indicator.

I’ve been coming to this annual gathering of the world elite of finance, business and public policy for some years now, and you can set your watch by it. If the mood is buoyant, you know that disaster is just around the corner, and if it is intensely gloomy, that things will soon be picking up.

En masse, bankers, economists and business leaders tend to be a very poor form of economic indicator. Sometimes they are so wrong that one wonders how they manage to stay in business.

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