Emerging markets like China and Brazil, as well as US, are urging European ministers to address its sovereign debt woes. But emerging markets, US lack consensus on solution.
Prime Minister Silvio Berlusconi blamed the media for Italy's credit downgrade from Standard & Poor Monday. Italians, having heard it before, took to the Internet to make fun of his comments.
The Dow lost 108 points to close at 11401 as investors worried that Greece will default on its loans.
Prime Minister Papandreou canceled his US trip and hinted at further austerity measures after Europe's 'troika' of experts expressed doubt about the Greek government's plans to avoid default.
Stock prices plummeted in Europe and stock futures were down in the US after EU ministers failed to expand a bailout fund to help Greece. Bank stock prices led the decline in Europe.
At a meeting of European finance ministers in Poland, leaders largely rejected proposals from Treasury Secretary Timothy Geithner on how to rescue the ailing eurozone.
Italy is under pressure from the European Central Bank to adopt austerity measures, but Italians suffering financially resent the government's austerity plan and tax increases.
Five central banks take steps to funnel cash to eurozone commercial banks by year's end. Their aim? Avert a funding freeze – and perhaps another global banking crisis tied to bad debt.