“Sachin Tendulkar misses the centuries of century yet again! “ –the headlines screamed across the television channels as the master batsman missed the opportunity to reach the coveted milestone when he was dismissed for 94 at the Wankhede Stadium, Mumbai. The Indian batsman has now been dismissed in the 90’s in eleven instances which has also created a record of sorts-a record which I am sure he will not be too proud of-in his long and illustrious career. Having been rested for the upcoming ODI series against the West Indies, the batsman will now be targeting the tour down under to achieve the century of centuries. All the Best Sachin! On one side, the master batsman is on the verge of greatness, but on the other, the Euro zone is on the verge of reaching the concluding words at the movies-The End.

The European leaders are doing whatever it takes to save the single currency from appearing on the books as a chapter on failed currencies. This is because the consequence of the euro’s debacle is so catastrophic that no sensible policymaker could stand by and let the inevitable take place. Investors opine that the euro break-up would cause a global effect worse even than the one we witnessed in 2008-09. The world’s most financially integrated region would be ripped apart by defaults, bank failures and the imposition of capital controls. The euro zone could shatter into different pieces, or a large block in the north and a fragmented south. Volatile currency swings between those in the core and those in the periphery would almost certainly bring the single market to a shuddering halt. The survival of the EU itself would be in absolute doubt.

It is common sense that the threat of a disaster does not always stop it from occurring. The chances of the euro zone being broken apart have risen alarmingly, thanks to financial chaos and a rapidly weakening economic outlook. The odds of a safe landing for the euro flight are lowering fast. The question arises-Can anything be done to avert the impending disaster? The answer is still yes, but the scale of the action needed is growing even as the time is running out. As the lender of the last resort, the ECB must do more to save the banks by offering unlimited liquidity for longer duration against a broader range of collaterals. The ECB has to act fast if it wants to save the Euro zone from falling into ruins.

Have a wonderful weekend everyone!