Why Europe is in trouble.

• Position: Off The News

Most analysts point to the inefficiencies of the monetary union, including the lack of labor market and other reforms and a fiscal and banking union, as a reason for why the eurozone economy has underperformed. Another reason may be the makeup of Europe's capital market itself. Europe's capital markets are not nearly as deep as the corresponding markets in the United States. For example, the eurozone corporate bond market is roughly a third the size of the American corporate bond market, as measured as a percentage of GDR Leveraged loan and...