EurOppa Gangnam Style

The European Central Bank has promised to buy up as much debt as necessary to keep the Euro in business, but is that going to be good enough? I have my doubts. The problem is that I don't see anything here to ease the death grip of austerity on the South.

This is not a Bernanke style quantitative easing, because the ECB will offset its loans with borrowing of its own, or some similar strategy of sterilization. Germany seems likely to prevent any real action to deal with the underlying problem, but its caution will not decrease the long run risk that those loans to the South will go South along with the borrower's economies.


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