Denial is a river . . . in Europe

EUobserver.com / Economic Affairs / ECB will not become bank of last resort, Draghi says: ""What makes you think that to become the lender of last resort for governments is actually the thing that you need to keep the eurozone together?" he (European Central Bank President Mario Draghi) said in response to a question on the issue following a meeting of the eurozone bank's governing council. "No I don't think that is in the remit of the ECB. The remit of the ECB is maintaining price stability over the medium term," he added." http://euobserver.com/19/114163

Paul Krugman (Nobel prize-winning economist) in the New York Times:  "I’ve been charting this trainwreck for a couple of years . . . Let’s just say that the euro was an inherently flawed idea that can work only given a strong European economy and a significant degree of inflation, plus open-ended credit to sovereigns facing speculative attack. Yet European elites embraced the notion of economics as morality play, imposing across-the-board austerity, tightening money despite low underlying inflation, and have been too concerned with punishing sinners to notice that everything was going to blow apart without an effective lender of last resort. The question I’m trying to answer right now is how the final act will be played. . . ."
http://krugman.blogs.nytimes.com/2011/11/01/eurodammerung/

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