By now, it's highly unlikely that you have not heard something of the European debt crisis.  In all of its complexity, for most people it may be difficult to comprehend exactly what is going on, when it started, who could be to blame, what, if anything, can be done, and how this crisis could affect you and your investments.  Here, we'll try to answer those questions in layman's terms.

The Euro Zone

On January 1, 1999, the euro was introduced as the new currency for use in the European Union.  To join the currency, member states had to qualify by meeting the terms of the treaty in terms of budget deficits, inflation, interest rates and other monetary requirements.  Of the 27 member states of the EU, currently the euro is a shared currency used by 17 of them.  These 17 countries are referred to as the "euro zone".   In early stages, the euro was used only in the stock markets, for financial transactions between banks and for cashless shopping (using checks or credit cards).  The euro notes and coins were introduced in January of 2002...