Thread: Greece About to Vote on Austerity

As far as I know it's about credit. Europe's economy faltering has negative effects in all sorts of ways. For a start, Europe's the biggest economy in the world, so US trade is reduced. Then there are the effects of sovereign defaults; US banks hold lots of that debt, and the loss of that revenue causes the whole financial system to freeze up. And any negative effects on the US economy are exacerbated because they make it less likely that it'll be able to repay its debts, reducing confidence and raising borrowing costs even higher.