Gary Shilling: Europe's Financial Woes Will Get Worse

While there have been signs, recently, that the crisis in Europe may be stabilizing, Economist Gary Shilling, president of A. Gary Shilling & Co. says that is anything but sure. Shilling says that while there have been no major events in Europe recently, the long-term economic problems have not gone away.

In this video, Shilling, who has become well-known for predicting the sub-prime crisis in the U.S. as well as the recession, discusses why difficult times remain ahead for the Eurozone, whether the future of the Euro as a currency is in jeopardy and the close financial links between the European countries of the north and south and how that is leading to financial chaos.

Think all this doesn't affect the U.S.? Keep in mind that U.S banks have a very high loan exposure to the Eurozone and to the U.K. So the way things unfold in Europe could have significant repercussions here in the U.S.