"Economic nationalism is now resurgent across Europe. And it is hard to see how a transnational institution like the European Union, run by faceless bureaucrats, and the 16-nation eurozone it created long survive.
As of Monday, Greece and Ireland had been bailed out – Greece with $145 billion, Ireland with $89 billion. All eyes have now turned to Iberia, to Portugal and Spain, where bond prices are sinking and interest rates are rising, and investors are eying the exits.
Monday's stock and bond sell-off across Europe testifies to a belief that this storm is far from over.
Why cannot a series of bailouts, cobbled together by the EU and International Monetary Fund, contain these serial crises?
Two reasons: populism and a return of economic nationalism.
Consider two telling comments from the Irish about the terms of the bailout of their country.
"(S)enior bank bondholders are to be protected, while the lowest paid and those most vulnerable people dependent on public provision are to be crucified," said trade union leader Jack O'Connor.
"I think the government should default on the bonds," said writer Valerie Wilson. "We are suffering so the bondholders don't suffer. It's capitalism gone mad."
Translation: Put Irish people first, before any foreigners holding bonds."
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