We're going to be gearing the eurozone banking system up on sovereign debt. Which means that if anyone does in fact default then the eurozone banking system really will go bust, crash and burn in a great big ball of flames.
...Have a nice week.
As he explains, and as we and others have pointed out, the plan is to have insolvent European banks load up on insolvent European sovereign debt. That is what I keep describing as two drunks trying to prop one another up and make it home.
Another metaphor that keeps coming to mind is the Monty Python pet shop routine. The politicians are like the store clerk, insisting that the parrot is alive. The market is like the customer, who thinks that the clerk is, er, mistaken.