Reply #26: Here's the conundrum [View All]

[tama]

Many European banks are bigger than their country of origin, meaning too big to save because ECB is not a bank of last resort. Federal reserve, on the other hand, is a bank of last resort.

On the other hand, US is dependent on foreigners financing their ballooning debt. So this deal is panicky agreement between US and EU financial and political elites of mutual back-scratching, even if for few more days or weeks or months before the whole house of cards falls down.