It's not the Greek debt that's holding things back, it's everything else

The logo of the European currency Euro stands in front of the European Central Bank.

STEVE CHIOTAKIS: In Europe today, German Chancellor Angela Merkel and French President Nicolas Sarkozy say they are united behind a new Greek aid package that could be hammered out as soon as this weekend. That note of optimism is being met with smiles in Europe where stocks have turned much higher. The debt crisis in Greece, of course, has rattled markets for much of this week and this year.

Jill Schlesinger is editor at large at CBS/MoneyWatch and she's with us live from New York as she is every Friday morning. Good morning Jill.

JILL SCHLESINGER: Good morning.

CHIOTAKIS: Now let's assume the Greek debt crisis is addressed somehow over the weekend. What's gonna happen Monday morning?

SCHLESINGER: You know, we're going to wake up with a larger, but not nearly as dramatic an issue as Grece -- a global economic slowdown. From China where the government's trying to cool their economy to here in the U.S. where housings in a double-dip and job growth is anemic and manufacturing tapering off. We're seeing a downshift in economic growth.

CHIOTAKIS: So it's not the Greek debt that's holding things back -- it's everything else.

SCHLESINGER: Exactly.

CHIOTAKIS: All right then, so what's it gonna take to reverse the global slowdown?

SCHLESINGER: We went through a similar period last year. And you'll remember the Fed came to the market with its $600 billion bond buying plan. So far, the Fed has not hinted it would do anything like that, but you know, Bernanke has shown he's willing to go to great lengths. Politicians could renew some of the temporary tax cuts and it couldn't be surprising. We would see organic growth and maybe we'll actually see some growth that we can really count on for the second half of the year.

CHIOTAKIS: With a little help.

SCHLESINGER: Yes a little fingers crossed there.

CHIOTAKIS: Help from Congress and from the Fed. All right, Jill Schlesinger, at CBS/MoneyWatch. Jill, thanks.

SCHLESINGER: Thank you.

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