Jim Grant spoke to Bloomberg News earlier today about the sovereign debt crisis. He says the fundamental question is "What will the European Central Bank do next?" His answer: they will "print money". He believes that all of the central banks are doing it now, the ECB being the last to take this step. Grant fears that the ECB is "heading for trouble" by taking on so many "dicey" assets and speculates about the institution’s solvency and leverage.
These are exactly the issues holding the ECB back. But the imperative to prevent a collapse in Italy is forcing its hand. Video below