The Greek parliament will vote on further austerity measures Sunday – the latest effort to alleviate a crisis that has careened between an EU bent on austerity and a resistant Greek public.
Japan couldn't trick its way out of an economic meltdown, and neither can the US.
Greek leaders say the country has no choice but to adopt the latest round of austerity measures, but eurozone leaders are skeptical Greece will follow through.
If Ireland rejects a recent EU treaty in a national referendum, it could undermine the fiscal compact Europe is hoping will bring the debt crisis under control.
Greece has agreed to implement painful austerity measures – including a 22 percent cut in the minimum wage – in order to receive the money it needs to pay off debt due in March.
Greek default now would prove less of a shock to stocks, especially in buoyant emerging markets and the US, which is off to its best start in 15 years. But Greek default probably would be first of several sovereign defaults.
The Dow fell 17 points to close at 12845 as talks dragged on between Greek political leaders over a fresh cost-cutting package required for the country to get more bailout loans.
Stock market looks to open lower as emergency talks fail to produce Greek rescue package. A disorderly Greek default could send shock waves through the stock market.
World banks are trying to solve the financial crisis the same way they caused it — by creating more debt.
It is considered progress that European Union leaders are discussing growth after two years of focusing almost exclusively on austerity, but actual growth strategies are still in short supply.