The never-ending euro zone crisis has been described as both tedious and terrifying. But it is worth looking at the end game, what will happen if it all goes wrong. Right now, we are waiting for the European Central Bank to step in and assume its lender of last resort responsibilities. That is to say, that it boldly enters the financial markets and buys enough Greek, Italian, Spanish, Portuguese, Irish bonds to drive their yields down to affordable levels. The ECB, for some reason still scarred by the Weimar hyperinflation of 1923, is loath to bail out the profligate southern European nations and requires the political cover of believable pledges that the PIIGS will restrain their spendthrift ways before it will open up its wallet.
Let us imagine it does not believe their promises