As I write, the Europe's sovereign debt crisis is a ticking bomb. Unprecedented events are happening at a mind-spinning pace. In the middle of last week the BRICS (Brazil, Russia, India, China and South Africa) offered to help bail out the struggling European countries. By the end of the week, the European central bank, the U.S. Federal Reserve and other central banks announced that European banks would be showered with "unlimited" loans to help them.

The reason for all of these sudden extraordinary measures is the fear that an impending European financial crisis could make the events of 2008 look like minor leagues. It is a justified fear. If financial panic spreads and speculators go for blood, it will be almost impossible to stop the chaos.