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News Link • Government Debt & Financing

Greece debt crisis (28.79) and a downgrade of the U.S. economy

• The Economic Spy
The Greece debt crisis and the U.S. economy! Are we out of the woods on both? The stock market broke its losing streak this week, but does that mean the U.S. economy is out of the woods? Is the Greece debt crisis still an issue or has the most recent “fix” solved the problem? The significance of the 28.79 in the title will be exposed later. The answer to both questions is of course no! The Greece debt crisis, maybe more so than the persistent weakness in the U.S. economy, is hanging over the global financial system like a boulder about to fall off of a cliff onto a family picnic below. On Friday the IMF downgraded its growth forecast for the U.S. economy to 2.5% this year and 2.7% in ’12 from its previous forecast of 2.8% and 2.9% in ’11 and’12. How do you know if a proposed “fix” for the Greece debt crisis has a punchers chance for success?

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