06-25-2011, 08:51 PM
Depending on how it happens, this default could have serious repercussions for the international financial system and the U.S. (and world) economy. . . . Perhaps the European authorities believe they have the tools to stem any panic that may occur this time in response to a Greek default. And as happened last year, they can count on the Federal Reserve to open a swap line of dollars as necessary. But it is worth noting how much the European debt situation has deteriorated over the last year.