If Europe Falls, U.S. Economy Falls Too

Although the crisis in the international credit markets today is not yet as severe as it was in 2007 and 2008, there are mounting signs that Europe's debt troubles are producing another global credit crunch. A top U.S. Federal Reserve official has already felt compelled to warn of dangers facing the American economy, and President Obama has said that he's monitoring the situation closely.

But what, exactly, does Europe's mess have to do with U.S. credit markets? Understanding that link is ultimately going to be the key to deciding what to do about it.