Many observers believe that the only way out for the Eurozone is for the European Central Bank to become a lender of last resort. Jean Quatremer quotes Marco Kranjec of Slovenia, a member of the ECB Board of Governors, saying that bank is "flexible" and will go "as far as necessary." He does not, however, quote Bundesbank president Jens Weidmann, also a member of the BoG of the ECB, who warns that the bank absolutely must not become a lender of last resort: it's not only wrong, it's illegal, Weidmann says. And Mario Draghi, the new head of the ECB, says that the LOLR role is "not the bank's job."So we have an impasse, with time running out.
For those who like their doom and gloom leavened with math, here are some numbers.