The mainstream media in the United States almost entirely ignores Europe, but I believe that what is going on over there is the key right now.
Italy is a financial basket case, and Europe isn’t going to be able to handle a complete and total Italian financial collapse. If you will remember, Europe could barely handle what happened in Greece, and the Italian economy is many times the size of Greece.
The can has been kicked down the road several times before on the Italian crisis, but now we are getting to the point where it simply won’t be able to be kicked down the road any further.
And once things start unraveling over in Europe, we will be deeply affected in the United States as well. The global financial system is more interconnected than ever before, and at this point we are even more vulnerable than we were just prior to the crisis of 2008.