Why the EU Crisis Will Be Bigger and Worse Than 2008

As noted earlier today, the entire European banking and corporate system is over-burdened with debt.

Jagadeesh Gokhale of the Cato Institute puts the situation as the following, “The average EU country would need to have more than four times (434 percent) its current annual gross domestic product (GDP) in the bank today, earning interest at the government’s borrowing rate, in order to fund current policies indefinitely.”

Suffice to say, no EU country has that kind of money lying around.