This is direct funding in all but name

The ECB will offer eurozone banks loans of up to 3 years on December 21 at a rate of 1pc in an unprecedented move to fend off a credit crunch that could stall the currency bloc's economy. Spanish bond yields have tumbled from euro-era highs since the ECB announcement - The ECB could buy all Eurozone debt and re-issue at 2 per cent reducing the interest bills for all. A reasonable grant transfer system to the South to make up for them struggling with to high a currency and a commitment for all to balance budgets from what would then be 'year zero'. Countries that contravene this new era pact could then be monitored and shown the door from the Euro to a very orderly default, which would then be their free and fair choice.The Germans would still be able to trade on what for them is a very low currency. The UK wouldn't have to stump up another 25 bill. Everyone's happy.Hell the Euro would even go up ... they'd have to print a bit more(easy money to use for the grant transfer system) to keep it from stomping Sterling and the dollar. It shows how easy it would be for the Eurozone/ECB to draw a line under the mistakes of the past and build for the future with political will. Now that's a currency I'd like to be invested in - I still think the inflexible Germans are magnetically attracted to the Gotterdammerung alternative instead though. What a disgrace! This is direct funding in all but name and is simply another example of the desperation of the Eurofools to bend/break/create any rules in a doomed attempt to rescue the greatest folly the world has ever seen.
Well now : the ECB lets Bank A borrow at 1% to buy Bonds from Country B which pays interest at 5%. When Country B defaults, then Bank A has lost its money. How does it repay its debt to the ECB? Not only that, but with inflation running at way above 1% the ECB is losing money on a daily basis. I'm sure that some europhile will crawl out of the swamp and tell that its all right because Santa Claus is coming soon.