Angela Merkel has again adamantly stated her opposition to Eurobonds as a means of saving the dying Euro experiment.
Quote: "Null and Void"
For good measure, Chancellor Merkel also gave a fulsome "Nein!" to the ECB acting as a lender of last resort.
She noted that the Euro crisis will take years to "sort out".
In terms of treaty adjustments and EU politics, she is correct. However, the Eurozone and global economy will not wait for years.
In the short term, whilst the politicians of Europe attempt to change treaties etc the markets need to be assuaged, otherwise the markets will tear the Eurozone apart.
Merkel and German politicians fret about "moral hazard". However, as I have stated on this site many times before, if your neighbour deliberate/carelessly sets fire to his house you help put the fire out first (lest it engulf your house as well) before you give him a kicking for being so careless.
Merkel et al need to bite the bullet and put a line under this issue now, with a major financial intervention by the ECB, new treaties in the coming years can address the issue of "moral hazard".
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