System and the crisis reemerged. europe is very critical to the united states. not only do we have a fourth of our exports there, but more importantly, significant proportion of foreign affiliate profits, in fact half of u.s. corporations are in europe. and that has been a very important driving force in the overall earnings of u.s. corporations and therefore the stock market rise which has been the most important driver of economic activity in the united states. when italy showed signs of significant weakness in selling its bonds, the yield is now over 6% which is an unsustainable level. it created a massive problem in europe because italy is a very large country, cannot be easy bailed out and cannot be bailed
Time for a double dip is the question, and whether we are bracing for a double-dip recession. is that where we re headed? depends on europe, not the united states. the united states was actually doing relatively well, sluggish, but going forward until italy ran into trouble. that destabilized the european system and the crisis reemerged. europe is very critical to the united states. not only do we have a fourth of our exports there, but more importantly, significant proportion of foreign affiliate profits, in fact half of u.s. corporations are in europe. and that has been a very important driving force in the overall earnings of u.s. corporations and therefore the stock market rise which has been the most important driver of