[youtube]http://www.youtube.com/watch?v=weF-_uh6KPI[/youtube] Alasdair Macleod, publisher of Financeandeconomics.org, sees little room for a happy ending to the worsening European credit crisis. In this interview, he builds on his excellent synopsis from earlier in the week that detailed how the crisis originated, essentially embedding a fundamental structural shortcoming into the entire Eurozone construct starting back in 1997. This flawed monetary model was exploited for temporal gain and it worked very well as long as the pie was expanding and nobody was looking too carefully at the mounting imbalances created as it chugged along beautifully. Everybody was getting rich on their Mediterranean villas going up in price almost daily. This whole thing was bound to work until, mathematically, it couldn't work. The process of growing sovereign debt at a much higher rate than national income year over year over year was bound to encounter a mathematical limit at some point. That time has arrived. How did we go wrong? How should we repair this? These are good questions that the European leaders are *not* asking at this stage. Instead, they're choosing to do all they can to perpetuate the status quo - focusing on keeping things together just through the next quarter, through the next election cycle. And it clear that their best efforts are meeting with less and less as the situation worsens. In this interview, Alasdair provides a very detailed update on where things stand in Europe and what to expect next. Most notably, he paints a picture of a lot of very well-meaning, very anxious people who -- tragically -- are diligently applying the wrong solutions to the incorrect diagnosis.
