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The Bundesbank slammed Draghi's plan. It said bond purchases entail "considerable risks for stability." Perhaps it's signaling that Germany's monetary soul matters more than saving Greece and other peripheral countries.
German banks refuse to submit to ECB "scrutiny." It's inevitable under ECB EFSF/ESM mandates if adopted.
Draghi "is participating in a huge game of (Ponzi austerity) deception." He signaled readiness to sidestep Bundesbank objections provided Angela Merkel agrees. His scheme "is bound to fail."
He doesn't have enough ammunition to bail out troubled PIIGS countries, let alone all Europe. Draghi is "hapless," says Varoufakis. He's forced to choose between "a walk-on part in the unfolding tragicomedy of Ponzi austerity and a bond purchasing scheme whose failure is foretold."
Instead of adopting workable policies, why is he hardline for measures sure to fail? One reason is that Germany and other surplus nations (Finland, Austria, the Netherlands) won't approve policies that bind them irreversibly to the euro.
It's not about not wanting to stay. They won't surrender bargaining power and option to leave. One day perhaps they'll have no choice.
Germany is Europe's strongest economy. It's the ECB's most important backstop. It doesn't have the capital or inclination to prop up all Europe. It won't risk hyperinflation doing it.
Neither can Draghi on his own rescue Europe. Saying he will is bluff. Markets rally as much on hope as reality. Eventually one catches up with the other. Expect day of reckoning time to be painful.
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