Greece's economic and political unraveling could not be coming at a worse moment for President Obama. The crisis has the potential to send shock waves not simply through Europe but also through global financial markets on the very eve of the U.S. presidential election.

Suggesting that an orderly Greek exit from the euro should be manageable because Greece constitutes only 2 per cent of the overall eurozone economy is all too reminiscent of the policy complacency that preceded the Lehman bankruptcy in September 2008.

In a new book entitled “Financing Failure: A Century of Bailouts,” Vern McKinley provides the most detailed account yet of the government’s decision-making process during these momentous events.

Attempts at austerity and deleveraging in Europe have converted an economic problem into a political dilemma, with leftist governments rising against Germany's austerity-laced rescue packages. Germany now faces a tough economic decision that will involve choosing between a breakup of the current euro system and a movement toward a common fiscal policy in Europe.

There will be a further significant intensification of the Euro-zone debt crisis in the months immediately ahead that could result in the Euro's unraveling within the next twelve months. This crisis poses serious risk to the US economic recovery.

Over the past few months, there has been a marked intensification of the Eurozone debt crisis that could have major implications for the United States economy in 2012.

This paper uses individual bank data to address the question of whether solvent Chicago banks failed during the panic as the result of confusion by depositors.

Shareholders are rightly fearful that any sovereign debt rescheduling in the periphery right now will trigger contagion and a full blown banking crisis in Europe's core countries.