More from the firm of Cooley, Richardson, and Schoenholtz:
In spite of Sunday’s victory of pro-bailout parties in the Greek election, the European Monetary Union remains in a battle for its survival. What began as a debt predicament is now compounded by a banking crisis. … Is [a US-style] TARP a model for the euro zone? TARP worked in the US because it helped take solvency of the banking system off the table, creating breathing room for other solutions to emerge.
For more, see their latest.
I can’t help adding: What’s different about Europe is the question of who does this. There’s no central authority — and revenue source — to make this happen. Not to say it won’t, just that it will be more difficult to accomplish than it was in the US.