ML-Implode News - In the Euro Zone, a Lethal Vacuum

There is also talk of forming a true fiscal union, but that seems to be doubling down on a bad idea.Â If the euro zone cannot summon enough cooperation now, how is any union requiring tighter cooperation supposed to work?Â How would national budgets be set and approved?Â A credit collapse remains a real possibility.
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The second problem is that some of the banking systems in the periphery nations may be too broken for monetary policy to take hold... why would anyone want to keep money in the bank of a fiscally troubled nation? That loss of confidence will not be easily repaired.

Since December, the European Central Bank has lent more than a trillion euros to euro-zone banks, but that has bought no more than a few months of peace. It isn't clear how much more can be done. It probably is about time to judge the euro zone as a failed idea -- and rarely is it wise to double down on failed ideas.

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In the Euro Zone, a Lethal Vacuum - Tyler Cowen