Europe on course to crash?

Economic Crisis: Europe on the brink – The Week
How a debt problem that began with Greece now endangers the entire Eurozone & US.

It's so bad that it could drag down the global economy, and tip the U.S. back into recession. It might also mean the beginning of the end for the euro, the common currency of 17 countries and 330 million people. The debt crisis began in one corner of the continent — Greece — and has spread like an epidemic, threatening banks and investors and undermining the creditworthiness of other European countries. Bailed out last year by the EU to the tune of $140 billion, Greece enacted tax increases and deep public-sector cuts, outraging much of its population. But the cuts didn't end the crisis, and in some respects backfired. Greece's unemployment rate has soared to 16 percent, and its economy is on track to shrink 6 percent this year. As a result, the country's government has falling revenues, and less money with which to pay off its debt, which stands at 160 percent of GDP and climbing. (In comparison, U.S. debt is 100 percent of GDP.) So in July, Greece went back to the EU for a second bailout, of $157 billion. But the fed up EU now says it won't put up more money unless Greece makes more radical cuts to government spending.

Can Europe's debt crisis be contained ? - TheLookout, Zachary Roth 27 Sep 2011