A perfect storm is brewing in Europe!

A country is on the verge of bankrupt in Europe in the near future. Why?

When a country is having a recession, colossal debts, very high unemployment (around 20%) and draconian austerity measures, the only ensuing outcome would be a total collapse as all these factors are a perfect recipe for bankruptcy.

Any economist would know that austerity measures are only meant for overheating economies, not for those in recession and especially for country with high unemployment.  Having austerity measures will mean that the country doesn't encourage investments and business expansions which in turn will not reduce high unemployment rate.  More businesses are expected to close down and unemployment rate will spiral up which will engender into a vicious cycle.  Under these conditions, there will be more protests in the country.

When this country collapses, the banking industry will suffer a direct blow which will cause people to lose faith in banks and/or financial instruments. All these will cause another financial crisis to resurface and some banks will go bankrupt too.  Maybe more than 1 country in Europe will turn belly up when this happens.

I am not here to talk down on the market but I leave it to the smart investors like you to ponder on what I have said so far.  Just remember "Caveat Emptor"!