Here's the only reason why the Eurozone Debt Crisis hasn't yet Exploded

With people wondering why the poop hasn't hit the ceiling just yet, well I think this shows why. Click on the link to the article and check out the bond purchasing activities of the European Central Bank since the beginning of August.

The ECB's Wall Against Contagion

The European Central Bank added another layer to the wall it’s building to stem contagion from the euro debt crisis. The bank added to its purchases of government bonds last week, settling another €7.99 billion in the five days to Nov. 18. That brings the total amount of securities held “for monetary policy purposes” to €254.4 billion—almost half of which has been acumulated since the ECB began scooping up Spanish and Italian bonds in August to prevent a spike in yields.

This is the wall between Spain and Italy and the unthinkable:

See link for rest of article.

Merely a delaying action by the ECB It doesn't have enough capital to bail out every country in trouble in Europe. Bonds will sell until they don't, which may be sooner rather than later. Unless they print money as the US has done, they will run out of options. This won't play well with Germany because of the Weimar hyper inflation that wrecked their economy, They are loath to repeat that experience. Look for the EU to begin to pull apart and for bankrupt counties to print their own currencies. Like the US they will eventually inflate their way out of the debt and the cycle will begin again.

Originally posted by bladerunner44
Merely a delaying action by the ECB It doesn't have enough capital to bail out every country in trouble in Europe. Bonds will sell until they don't, which may be sooner rather than later. Unless they print money as the US has done, they will run out of options. This won't play well with Germany because of the Weimar hyper inflation that wrecked their economy, They are loath to repeat that experience. Look for the EU to begin to pull apart and for bankrupt counties to print their own currencies. Like the US they will eventually inflate their way out of the debt and the cycle will begin again.

This update, It's happening sooner rather than later:
Germany today failed to reach its maximum sales target of 6 billion euros ($8.04 billion) at a bund (bond) auction. Bids were for only 35% of 10 YR bunds available.
The fan is splattered with poop and the stronger EU countries will run for the exit with what little capital they have left