Suddenly, Over There Is Over Here

The articles discusses that many banks in Europe are facing the problems that short-term lenders are refusing to renew their loans when loans comes to the due. The troubles of Europe and its debt-weakened banks will imperil the United States. A crucial mechanism linking financial players in the United States to the problems in Europe involves credit default swaps, those insurance-like products that did so much damage during the 2008 financial crisis. Even though we do not know how much this will hurt the U.S.’s economy, it will defiantly bring another challenge to the current economic situation.