Over the last year, several posts of mine addressed European debt crisis issues. The problem is the link between Euro-zone sovereign borrowers and lenders. The risk has always been systemic within the Euro-zone to the extent that banks lent too much to governments which borrowed money also to save banks. We cannot see where this Ponzi-type scheme ends, but we can see that some countries are heading to a crisis similar to the sovereign default of Latin America in the 1970’s. On the other hand for some countries the sovereign debt is indeed external debt (held by banks in other EU countries), which makes the domino-effect likelier. It's true that it's not about Ireland or Greece anymore. Actually it has never been..
I still contend that it's not only a matter of the Europeans completing their monetary cordon sanitaire but it's a matter of restructuring the Euro-zone debts via common issuance of EU bonds. Any ECB's decision to put more money in circulation by buying government bonds is just the Ponzi's never ending story. Actually what should be done is to start writing-off all those loans/bonds which the banks count as assets because they were expecting to be paid back, and the money in the Euro-zone would be counted simply as destroyed.