Euroland a Zone of Instability?

In July 2005 we penned a warning about the Euro. The past few months have demonstrated that the new currency is not the solution to the Old Continent's economic problems. In fact, it is a potential risk to the stability of the Eurozone. While the risk of sudden shifts in currency values is (for the moment) off the table the economic imbalances express themselves in the credit markets as the markets try to evaluate which country may eventually have to default on its debt.