Framing the Greek problem

From Thaler's Corner on Seeking Alpha three days ago:

Let's not kid ourselves. The European Monetary Zone is on the brink of implosion, along with the European Union, the Schengen area and everything else that goes with it.

The situation on eurozone peripheral nation debt markets is grim.

Investors who must sell debt instruments as a result of credit agency downgrades are not finding any buyers.

Aside from any Austro-liquidationist monetary theory, if we are to maintain the "E" in ECB, the latter must absolutely launch a massive and transparent European government bond purchse programme (Shock and Awe).

The state bureaucrats presently sitting on the ECB Governors Council will never dare to approve such a solution without firm orders from their government leaders.

Sarkozy and Merkel are meeting today in Brussels and have summoned Mr. Trichet to attend.

No European leader should want to be stuck with the sort of historical stain left by Andrew Mellon, US Treasury Secretary from 1921 to 1932 :

• ‘Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate’.
• ‘It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life.’
• ‘Values will be adjusted, and enterprising people will pick up the wrecks from less competent people’.

We will see soon enough.

Best of luck to everyone.