Banking Problems In Europe Have Global Repercussions

This short post in The Economist argues that the global banking system is in a position much like it was in 2008. The sovereign debt problem has placed many European banks at risk and national governments do not have the resources to contain the risks. For example, the funds required by the largest bank in Belgium are greater than the GDP of Belgium. The problems in Europe will cause problems in the interconnected global banking system if they cannot be dealt with.