Greek Economy's Impact on World Markets

Friday, June 17, 2011

In discussing the troubled Greek economy's effect on U.S. markets, Standard & Poor's equity market strategist Alec Young told the AP that "There’s no easy answers or they would have found them by now. We’re recommending that clients continue to expect volatility in the U.S. market as a result of the news coming out of Greece." The length and depth of that volatility remains to be seen. In Brussels, European Union leaders scrambled to draft a second bailout on Thursday, coming up with a 12 billion euro plan they hope will avert international disaster. For more on just how big this news is for world financial markets we’re joined by our resident experts Louise Story and Marcus Mabry.  Louise Story is the Wall Street and finance reporter for our partner The New York Times and Marcus Mabry is editor-at-large of the International Herald Tribune.

Guests:

Liz Alderman, Marcus Mabry and Louise Story

Comments [2]

listener

"Watch the US debt.."
"Is California America's Greece"?
"This all hastens the rise of China and the shrinkage of the Western economies".
Isn't this what fiscal conservative politicians and activists have been saying for years now while surrounded by a din of derision and demagoguery? Will we listen now?

Jun. 17 2011 08:55 AM
Phil Henshaw from way uptown

You ask "what can be done" about the euro crisis.

There is only one thing that has ever stabilized underperforming assets with unsustainable debt, and it's generally better for all for it to be sooner than later. That's to "reset" the game, declare a "winner" and start over.

Bankruptcy is a form of that in a healthy economy, but when it's the global economy that is "deeply underwater" (all the developed economies as a unit getting ever further beyond recovery) it would mean resetting the value of credit in general. The only fair and effective way to do it, is to reset credit to equal the real value of the underlying assets.

We can do the math and save the world..., but we may let nature do worse for our not having the guts... www.synapse9.com/issues/reset$.htm

Jun. 17 2011 06:26 AM

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