Why the European sovereign debt crisis is back on

About a year ago, I wrote a post which I titled "Why the euro crisis will happen again and Italy will be involved". And the gist of that piece was that Europe had wasted the sovereign debt crisis. Nothing had fundamentally changed in Europe. Greece was not a special case. The problem wasn't Greece. The problem was the euro's design. And that meant crisis was sure to return.

The reason I highlighted Italy is because it was the clear weak link economically and politically. And it had a weak banking system. Unfortunately, the weaknesses I highlighted a year ago have proved insurmountable. The European sovereign debt crisis is back. And I think it will run for some time.

So here's how I want to play this. I'm not going to write an all-encompassing post on what's wrong, what the reaction will...


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