But despite this, would it be prudent for the ECB to stand idly by while the dominoes fall in Southern Europe? If the contagion spreads to Portugal, Spain, Italy and Ireland, eurozone nominal GDP will fall, prices will fall, and the euro will collapse.
Bernanke, speaking of the Great Depression, famously said "We [the Fed] did it. It was our fault." Does Trichet want a European collapse to be his historical legacy?