We can interpret their “bazooka” as a religious exercise - designed to reward virtue and punish vice, regardless of consequences.
The reward goes to virtuous savers, those who hold PIIGS debt; as John says, bail-outs are better for creditors than debtors. This, though, raises a moral hazard problem; rewarding people for making bad loans encourages them to make more in future.
The punishment goes to speculators. The “wolf pack” which had shorted stocks, PIIGS debt and CDSs on Friday got shafted.
But there’s also punishment for “profligate” borrowers, who are expected to slash their deficits; ministers agree that “plans for fiscal consolidation and structural reforms will be accelerated.” Remember, the bail-out addresses the liquidity problem, by ensuring there’ll be a market in PIIGS bonds but the solvency problem - that the PIIGS are borrowing heavily - remains.
However, as I’ve pointed out, the “excess” government borrowing in southern Europe is, to some extent, the counterpart of “excess” private saving in the north. Which raises the possibility that PIIGS’ problems could be solved in part by reflation in the north. If northerners were to spend more, PIIGS would enjoy increased demand and thus tax revenues. And the problem of high relative unit wage costs in Portugal and Greece can, in theory, be addressed by reflation in the north, not just deflation in the south.
This, though, is what the ECB is 100% against. Although it seems happy to bring credit risk onto its balance sheet by buying Greek debt, if necessary, it is opposed to monetary expansion - despite the fact that the euro area’s money stock is shrinking. It seems to be pursuing the course of virtue - monetary rectitude and protecting savers from inflation - even though this condemns Europe to deflation.
For a project that is supposedly secular, this desire to pursue virtue and punish sinners, irrespective of consequences, seems rather Calvinist.