First they thought China might bail them out now there has been talk of maybe the Federal Reserve filling the bill. Europe seems capable of coming up with any solution except the obvious one. As I suggested yesterday, overall their problem is they are like the knock Bill Parcells put on running quarterbacks like Mike Vick, et al: they are neither quarterbacks nor running backs but some mutated halfway between making them neither in reality.
That's what the Eurozone is-it's both too integrated and not enough. It is too integrated for a member country not to be harmed by what happens in other member countries. It is not integrated enough to be able to solve a systemic problem in the entire Euro zone as a whole.
This would be different if the ECB would simply step up to the plate and assume the role of lender of last resort. But it is very timid about doing such a thing and would rather hope that China might bail them out and now the U.S. As Tim Duy, suggests, the only way that could possibly happen would be if the situation had worsened in a way that seemed to put the U.S. in jeopardy. With the fall of MF Global going down without leaving a scratch on us this is unlikely.