Banks in Europe are in such dire shape, to properly shore them up, a cash infusion of $130 Trillion (with a T) would be needed - unattainable.
The UBS report begins by stating "...the Euro does not work. Either the current structure will have to change, or the current membership will have to change". Yikes!
The report extends in two directions. Direction one is a breakup of the EU itself, in which Germany, the anchor, or one or more member states simply leave the union due to default or panic. Direction two is the collapse of the common currency itself, thus pushing member countries back into their own currencies as they existed before the EU was formed. In all scenarios 25% to 50% of GDP will be wiped out across the EU.
The report's chilling conclusion - ""Europe” as an integrated polity becomes meaningless. It is also worth observing that almost no modern fiat currency monetary unions have broken up without some form of authoritarian or military government, or civil war".
The scope of the problem is reflected in the Top 20 Debtor nations, all but the USA, which is 20th are in Europe. See the list: Debtor Nations: Top Twenty Facing Ruin.
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Italy, France, Hungary, Portugal Are Next To Fail
Warren Buffet: EU Not Working - Breakup Inevitable
China Premier Sees Chronic Global Recession Looming
Banks Plan Breakup Of Euro
Prepare For Riots When Euro Collapses - Foreign Office Warns
Britain's Enter Next Recession Start Of 2012
