Capitalist banking systems are built on the confidence trick that people can get their money back at any time. Of course, if everyone sought their money at once, no one would get anything because the financial system would collapse.
The eurozone is being held together by a more-fragile bluff. This is the European Central Bank’s “outright monetary transactions” scheme that was announced in September last year. The scheme pledges to buy unlimited amounts of bonds of distressed sovereigns,1 a plan that was enacted by Mario Draghi to back up his comments two months earlier that the ECB would “do whatever it takes” to save the euro.
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