Ignoring Europe's Real Problems

A key reason why Europe’s financial markets remain nervous is that, officially, there is no problem. Officially, Greece does not have a solvency problem, and restructuring of its public debt is not an option. Similarly, in Spain, the official line is that the domestic banking sector is well capitalized. But the first rule of dealing with financial-market turbulence should be to acknowledge the truth and scale of the problems at hand.