Como dijimos ya hace un par de semanas en «El Eurobono ha venido y nadie sabe cómo ha sido (2)», el crédito ilimitado del BCE con vencimiento a 3 años (LTRO) ha cambiado radicalmente el escenario europeo. La primera ronda de estas Operaciones de Refinanciación a Largo Plazo, y la segunda prevista para Febrero, han disipado el riesgo de colapso inminente del sistema financiero de la UE. No obstante a nadie se le debe escapar que la eliminación de la inmediatez del colapso no supone solución alguna al problema de fondo, pero sí es cierto que sirve para rebajar algunos grados el infierno en el que vive el la banca europea. (more…)
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«What would happen if credit rating agencies ceased to exist? It is a question that few of us ask ourselves today, but one that leads to some fascinating reflections.»That’s how it began" 
We had already warned of this in
We have already pointed this out in previous articles 
«Some central banks in Europe are beginning to assess contingency plans for the possibility that some countries may leave the euro area or that the monetary union may collapse completely».» This is the headline of the 
The secret will not be revealed until Monday 12 December. But given what we have seen in terms of the cowardice, mediocrity and financial incompetence of the EU’s politicians and bureaucrats, coupled with the conflicting interests of the Merkozy duo, it cannot be ruled out that the eagerly awaited announcement on 9 or 12 December will amount to yet another ineffective stopgap measure. Nevertheless, hopes are pinned more than ever on these statements, which will do nothing more than make public the agreements that have been secretly being hatched since the finance ministers of Germany, the Netherlands and Finland met discreetly last week. 
Italy’s debt alone is greater than the combined debt of Ireland, Greece, Portugal and Spain. Germany cannot pay off the PIIGS’ debt, and the other economies still afloat (namely France, Belgium, Austria, etc.) have their hands full simply trying to feign a solvency that is deteriorating more and more with each passing day. The only way to repay the market (institutional and private investors and speculators) the money owed by Italy and the other PIGS is to print it in the purest banana republic style. 
These days we are seeing how the moment of truth is slapping Eurozone politicians in the face. The risk premium, i.e. the market's disdain for Italian debt is throwing the country, and therefore the rest of the Eurozone, into bankruptcy. Watching the Italian giant teetering on debt feet worth more than 120% of its vast GDP, Greece's bankruptcy may seem like child's play. 
If I were a Greek and a businessman, it would be clear to me. My business would have a very dark future in the Eurozone with a wildly recessionary economy. With rising taxes aiming at desperate tax collection and consumption collapsing, my sales and chances of survival would be nil. And if my business had the capacity to export, I would also not be able to support it with a euro as expensive as the current one, as my competitiveness would be and will be at rock bottom in a foreign exchange environment that only German productivity will withstand.