Weekly Wrap: Continued debt problems in Greece

Marketplace Staff Jun 17, 2011
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Weekly Wrap: Continued debt problems in Greece

Marketplace Staff Jun 17, 2011
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Kai Ryssdal talks with Leigh Gallagher from Fortune magazine and Marketplace’s New York bureau chief Heidi Moore.

On how the Greek debt crisis will affect the U.S.:

Leigh Gallagher: The odds of it really affecting the U.S. in a major way, I would put, at this point, still pretty small. I mean, the situtation there is pretty serious. Greece is just a fraction of the Eurozone GDP, but really so many countries and European banks hold its debt, the fear here is contagion.

On why Greece’s economic future is unclear:

Heidi Moore: Our grasp of banking data is as bad as it ever was. And there are a lot of contracts out there in the market where people have bet on whether Greece will fail or not. And not just Greece — Italy and Spain. And a lot of those contracts — insurance contracts, really — are going to determine how well the banks survive this.

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