VK, Your analysis may be a classic of understatement. If you look at the economic condition of the EU countries, it is becoming increasingly difficulty to guess which one will fall next. In addition to Spain, Italy and Portugal; the next domino to fall could well be Belgium or the Netherlands. Since Germany is not inclined to continue funding the fools, the situation is dire. Great Britain, France and the Scandinavian countries have problems of their own that will make them unable to help in any significant manner.

At this point, Great Britain is glad that it maintained the Pound as its currency and I suspect that Germany is wishing it had stayed with the Deutsche Mark. As a side note of interest, GE has systematically reducing its European exposure with the exception of Germany where its rate of investment is increasing.