"The options are ugly and, officials freely admit, smack of "smoke and mirrors" with too much reliance on the very leveraging and financial products the EU has previously blamed for causing the initial banking crisis. It was that mess, of course, which spilled over into the sovereign debt crisis that has threatened to tear down the euro.
"Can the euro be saved by spreading the debt and slicing and dicing the
EFSF's capital or guarantees into highly complex financial products?"
asked one national finance ministry official. "It's looking much more
like a fiendishly clever conjuring trick, or even a Ponzi scheme, than the
big bang the markets want."
Repeat after me, and learn this for prep:
- There is no plan
- There was no plan
- There never will be a plan