If the IMF is asked for funds from the EU, it won’t have enough resources for the rest of the worlds emerging markets if there is a contagion.
The fiscal situation in the EU’s GIIPS countries is not good, but it’s not like they were jewels to begin with, they’ve battled these problems for decades, even centuries.
The ECB must resolve this. Today, there exists a real possibility that the EZ might just break apart and countries would return to multiple currencies.
The ECB must stop the meltdown by buying GIIPS bonds as needed.