It's pretty obvious to classical liberals like myself that the European economic crisis is the result of social democracy. America has practiced a different brand of social democracy, but we've created a statist system that's driving us to the same poor results found in most of Europe. Before anyone stands up and yells "Denmark!" look at the whole picture and how the European Union as a whole is failing, even though a few nations, like states in America, are doing okay. If Denmark happened to be an independent nation responsible for its own defense, the story would be much different. Besides, as we look at the many consequences from government interventions in different countries through the years, to ignore all this evidence and gleefully claim success in Denmark, as if that wipes out the reality of the history of statist practices, is insane.
As France faces the possibility of a hard Left backlash, and as Greece churns in public unrest over austerity measures, and as Spain and Italy teeter on collapse, socialists and communists are positioned to make great advances as people are promised that wealth will be seized and redistributed. Nevermind that States have been responsible for the corporate favortism that has created a wealthy elite which controls much of the world's finances, if the flames of populism are lit and emotions overwhelm reason, the anti-capitalist narratives of the last 80 or so years can cause angry people to believe the leaders who blame the evil rich and present the Enlightened State as the salvation. As happened in Italy and Germany, if the hard Left gains control of emotional masses, this will cause a reaction such as Fascism became a reaction to socialist and communist advances prior to WWII.
In the US the State has created a deep political divide between Right and Left that is set up for greater conflict, and if our financial crisis becomes worse, and if the hard Left succeeds in gaining power and seizing wealth and violating private property rights, we could be in for a long struggle that will not end well. The answer is to avoid the statist excesses of both Right and Left and to limit the source of conflict -- the State -- more specifically, the interventionist government which is empowering the State. Americans need to come together in cooperation and economic growth in the private realm, not battle each other senselessly in faux-conflict created in the political realm by power-mongers determined to control America.