How the Euro Crisis could play out

I came across these two postings on the internet yesterday evening:

Italy – Europe’s Next Debt Casualty?

Using a 2011 GDP of €1.826 trillion from the CIA World Factbook, Italy’s 2011 debt-to-GDP rings in at just over 132 percent, just over twice the European Union limit of 60 percent. Unfortunately, Italy’s debt keeps rising while its GDP doesn’t…

The danger of depression in the Euro Zone in 2012

If the European Leaders and ECB continue the present stupid policy of bailouts, they will eventually run out of money. This will cause a crisis in confidence in the stock market, and the whole system will collapse in an out of control Depression…

[Five short videos, with a total of about half an hours running time. The analysis and predictions in the first four videos seems plausible. I think the proposed strategy for the Euro Zone in video 5 (“work longer, harder”) is rather simplistic, although I do think that the criticism of many Europeans’ “entitlement mentality” is justified.]

Not that the Euro Zone is the only area with problems which are not as visible as they should be. The UK is not in much better shape either (Read David Kauder’s book “The Greatest Crash” or for a short version, this article in the Daily Mail)