The sovereign debt crisis in Europe is not an isolated problem, considers David Frum, former assistant to president George W. Bush and CNN contributor: “It is an American crisis, too, a crisis that may thrust the U. S. economy back into recession in 2012”. If the Euro cracks up, he explains, the banks will seek government help or stop their lending to business and consumers. The bank crisis may translate to into a Europe-wide recession. The trouble of the American crash crossed the Atlantic in 2008; the effects of European crisis may have the same effects in the opposite direction. Financial institutions in Europe may lose the ability to repay U. S. creditors aggravating the losses in the already troubled American financial system.

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