In his latest column for the New York Times Magazine , Planet Money 's Adam Davidson welcomes us all back from summer vacations with a reminder that the Euro Crisis has not been solved. And he provides quick primers on seven key questions that are lurking. We were struck most by #4: Is Europe a Lehman in waiting? About 20 percent of U.S. foreign trade is with the E.U. That’s significant, but if the European economy collapses, it’s quite likely that China, India, Brazil and several gulf states will pick up much of the slack. And a truly collapsed euro would mean discounts on everything from French wine to Italian shoes to Greek yogurt. More worrying is if a) the euro zone faces an abrupt financial panic, and b) it turns out that many American banks are overly invested in those suddenly defunct European banks. There is a general assumption that U.S. banks are prepared for the worst. But many in the financial world thought they were prepared for the collapse of Lehman Brothers too. Read The Euro Crisis Is Back From Vacation here .
Filed under: adam davidson, planet money, EU, Europe, NPR, Lehman, euro, euro area, european banks, euro crisis, euro breakup