"Welcome to the end of the largest credit bubble in the history of mankind."
I don't think it is as bad as that. Its been worse before and always gets fixed by inflation. This is because as prices and wages increase so does the GDP and the debt to GDP ratio becomes smaller. But governments have to spend only what's available to them for this to work.
The eurozone debt problem will not effect cash economies like Germany as much now. This is because the trillions printed by the ECB and loaned to euro-zone banks at 1% has been used to buy (re-issue) gov bonds. The PIIGS bonds held by countries like Germany has mostly matured and been repaid. The PIIGS govs now owe most of their debt to their own banks who owe it to the ECB for 1% interest.
Consequently, I don't believe the situation in Europe is unmanageable or on the virge of collapse.
Also, I have never seen so much fuss made over one US unemployment figure and a small 0.1% change to the unemployment rate. Especially when employers are watching the eurozone crisis play out.
On Thursday Bernanke talks. Will he put QE3 back on the table? I think he will, the USD is getting too high and if this week's data suggests the US economy is stalling, then he has no choice...
