More stupidity will like this will bring on another crisis. We're already well on our way there. Europe hasn't learned a thing from watching the PIIGS flirt with disaster. U.S. policymakers haven't learned that housing prices need to drop further for market equilibrium to take hold. Global investors haven't learned that their risk appetites are being stoked by the Federal Reserve's quantitative easing.
Here's a learning point for the rest of us. Europe and other established economies may be on the ropes for a while, depressing their equity markets. The iShares MSCI EAFE ETF is trading at a P/E of about 12 thanks to European trouble. That's a lot cheaper than some other index-based products right now.
Full disclosure: Short cash-covered puts under EFA.