Why 2012 will be a scarier sequel to 2011's horror show

Once again - and perfectly understandably - global investors are shaking their heads at the nightmare of Europe's currency union without fiscal or political union. Growth forecasts are falling back into the red and the eurozone banks index is back to the worst levels seen just before the announcement of the European Central Bank's long-term refinancing operation. The case for 2012 to be a scarier sequel of 2011's horror show seems to be complete. Any investor trying to sell European equities to an already nervous public on the pretext that there are not any structural problems or that...