When your banking system collapses, your economy goes into a free fall, the only solution is printing money, and too high an inflation results, but it is far better than the alternative.
Those critics who are still mad about TARP and the Fed acting as a lender of last resort to the banking system in our near financial panic of 2008 need to see what their preferred path looks like.
Greece, as a member of the Euro cannot print money and they are about to default on everything, including payments to their own population. So, with no lender of last resort we will see a demonstration of what happens when that function does not perform well in a crisis.
Then, hopefully, the lender of last resort function will be restored to a position of widespread respect in the U.S.A.
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