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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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.