This is why Europe is still an unattractive venue for offshore investors, and why the euro is as cheap as it is.

If the euro does tumble again -- and we think it will -- we must expect the ECB to orchestrate another round of currency intervention.

In recent experience, any report that shows Germany's economy faltering has been bad for the euro,

There's no place like home, we say to American investors. Click your heels three times and leave it in Kansas.

If the euro fails, Europe fails.

With less credit available, less growth is possible. So we are looking at a bad situation here that we fear can only get worse.