How much of an ECB guarantee would be needed?

"Here is one recent report (insightful throughout, FT link):

But the scale of the problem is bigger than in 2008. Mr King notes there is $3,000bn of government bonds trading with spreads of more than 150bp to German Bunds. There were only $2,000bn CDOs outstanding at the peak.

The population of Germany is about 81 million, if you wish round that up to about 100 million, if you include some of the smaller Triple A countries. In other words, that is a guarantee of $30,000 per German, or $120,000 for a household of four. Note in passing that an ECB guarantee either requires recapitalization of the central bank or a higher rate of inflation, unless you think the whole thing is a self-sustaining free lunch and all the liquidity problems would vanish (unlikely, at this point). In any case a guarantee has to at least put resources on the table..."

at http://marginalrevolution.com/marginalrevolution/2011/11/how-much-of-an-ecb-guarantee-would-be-needed.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+marginalrevolution%2Ffeed+%28Marginal+Revolution%29