Greek Default Sets Record: No Problem, Says Bernanke!

On Friday, Greece reached a deal to "restructure" its national debt downward by about $133 billion. That's the biggest sovereign restructuring in world history. But don't worry. According to Fed Chairman Ben Bernanke, it's no big deal for the U.S.

It's Europe's Fault: They're Holding Back the Recovery

Many European nations have deficits that make the U.S. look thrifty, and over a year after their problems came to light, they're still holding the worldwide recovery back. But because they share the euro, normal solutions aren't available, which means the EU must bite the bullet and accept an orderly default, or watch matters spiral downward.

Greek Deficit Is Worse Than Expected, Debt Downgraded

Eurostat, the Luxembourg-based statistical agency for the European Union, revised its deficit forecast for Greece to 13.6% of gross domestic product, up from 12.9%. Also on Thursday, Moody's Investor Services downgraded its rating on Greece's sovereign debt and warns that further downgrades could be in the offing. The credit ratings agency says that the reduction in its rating to A3 from A2 is based on the view that there is a significant risk that the country's debt may only stabilize at a higher and more costly level than previously thought.