World markets got a boost this week from Japan's pledge to help overly indebted EU nations. What's behind Japan's move? Sure, the spirit of global cooperation is part of it. But much more significant is Tokyo's need to keep pace with Beijing in the influence game.
The Dow tumbled Tuesday as part of a global sell-off in stocks fueled by further speculation that China will hike interest rates to fight inflation and renewed worries over the wobbly finances of Ireland, Portugal and Greece.
To hear the pundits tell it, Greece's debt woes signaled the end of the euro, or worse. Yet, the country's rebound grabs few headlines. This pattern is getting repeated over and over, much to investors' detriment.
The Greek government's austerity measures are having a negative effect on economic growth. Greek GDP shrank again in the second quarter, and has fallen 3.5% in the last year.
The EU and the IMF have issued a glowing report card on Greece's reform efforts, but it's clear the country is hardly out of danger. Among the threats: Falling GDP, rising prices and the possibility of spiraling into ever-deeper budget cuts to offset falling tax revenue.
After the U.S. spent trillions to prop up reckless banks and spark a recovery, growth and employment are anemic. Germany's recovery, meanwhile, seems stronger and more durable. And even Greece is in a better situation than the U.S.
Squeezed by a debt crisis, Greece may put some of its islands up for sale or long-term lease to raise cash for the government's ailing finances, according to the Guardian. Chinese and Russian investors are reportedly interested.
Author and money manager Zachary Karabell thinks Lehman Brothers' collapse in 2008 has made investors overly cautious. And he sees bonds as riskier than stocks right now. (With video.)
Ian Bremmer, author of The End of The Free Market, sees stern challenges ahead for Europe, but he thinks fears of the eurozone's dismantling are "overblown." He explains why in this video Q&A.
Asian markets plunged Wednesday as Greece's credit rating woes rocked the markets.
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.