9. I think he is talking about the banking issues not Health care, etc.
When he says worse he may be referring to the austerity plans that are straight out of Milton Friedman's Chicago School ideas. In this country it is mostly the rethugs who are calling for austerity. Austerity is not going to fix anything.
I also do not see Krugman cheering for EU to fail. He is saying that any failure will be felt world wide. Not a good thing.
As to Italian papers talking about this - neither are most of ours. Today the leaders of the world prefer to keep the people in the dark.
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