Everybody knows what the answer to the problem in Europe is. The ECB must print a couple of trillion Euros and purchase PIIGS debt with it. There are no other buyers for these bonds as banks are delevering and private investors have no interest. Even the Vatican made a statement saying this is the only solution.
Yesterday, at a press conference Angela Merkel offered no remedies to the crisis but made certain to shoot down every possible solution. The most astonishing part was that Sarkozy and Monti stood by in agreement. I might believe that Merkel is this clueless but to believe that Sarkozy and Monti are as clueless is impossible. The most likely explanation is that they are playing along with Merkel until she can convince her supporters that she has tried every other route.
The choice is simple, print money or allow the Eurozone to break up. I have a hard time believing that the Europeans will give up on the Eurozone without even trying. The only question is how much more blood needs to flow first.