The instability of Euro zone and the threats of its collapse

A messy, disorderly and globally extremely serious economically disruptive disintegration of the euro zone and the collapse of its currency, a scenario some commentators call eurogeddon, is no longer just the talk of alarmists. At least two European governments have started working on contingency plans for such an eventuality, which would leave very few if any economies in the world untouched by the fallout. The euro was created on the premise that no extreme country-specific imbalance would ever pose a threat to the stability of the common currency area. An intergovernmental covenant on the Stability and Growth Pact was considered, on its own, to be sufficient. But recent crises in euro bond markets have highlighted the structural problems and the deficiencies of the euro architecture.Some analysts say the shock waves of eurozone governments defaulting on their debts would risk the collapse of the entire financial system, leaving banks unable to return money to retail depositors and destroying companies dependent on bank credit. On a broader front analysts at investment bank UBS warned that the most extreme consequences of a break-up include risks to basic property rights and the threat of civil disorder. When the unemployment consequences are factored in, it is virtually impossible to consider a break-up scenario without some serious social consequences. The financial crash of 2008 swept the entire globe and virtually every nation on earth was deeply affected. The next wave of the financial crisis is also going to be felt globally. We live in one of the most interesting times in the history of the world. Are we prepared for what is about to happen