07/10/2010 05:12 am ET | Updated May 25, 2011

Eurozone Bailout: The Kitchen Sink Goes In -- Now It's All About Solvency

This is a whole new level of global moral hazard -- the result of an alliance of convenience between troubled governments in the south of Europe and the north European banks (and implicitly, north American banks) who enabled their debt habit. The Europeans promise to unveil a mechanism this week that will "prevent abuse" by borrowing countries, but it is hard to see how this would really work in Europe today.