Although there are similarities with what the United States went through at the onset of the financial crisis, the issues in Europe are are more complex and will take years to resolve, Henry Paulson, former Treasury Secretary and founder of the Paulson Institute told CNBC on Wednesday.
Unlike Greece, Portugal is a debtor nation that has done everything that the European Union and the International Monetary Fund have asked it to, in exchange for the 78 billion euro (about $103 billion) bailout Lisbon received last May. The NYT reports.
The cancellation of Wednesday’s special meeting of euro zone finance ministers, which was planned to rubber-stamp Greece’s latest bailout deal, shows that other euro zone members are increasingly bargaining harder with Greece, economists told CNBC.
US Futures point to a higher open for Wall Street after a mixed trading session yesterday. European stocks rose on Wednesday following better-than-feared GDP figures for Germany and France, and as debt-stricken Greece appeared to be nearing a political consensus on painful budget cuts. In Asia markets rose on Greece while comments from China's central bank governor saying Beijing would continue to invest in euro zone government debt aided sentiment.
European debt crisis headlines are the wild card for markets Wednesday, but the interesting news of the day may come from the Fed.
Fears of a double-dip recession in the embattled euro zone are expected to be stoked by negative growth figures for the euro area on Wednesday.
The warning by ratings agency Moody’s that it may cut the triple-A ratings of two of the euro zone’s largest countries, France and the United Kingdom, was met with resignation by analysts and economists Tuesday.
Stock markets can expect to receive a boost from a second huge European Central Bank liquidity injection, according to Lakefield Partner’s Bruno Verstraete.
The Greek parliament’s approval of fresh austerity measures despite violent protests in Athens opened the door for a brighter disposition in markets and this could push stocks upwards, according to analysts.
The debate about whether stocks are ripe for a pullback will be as much a focus as anything else Tuesday, as investors watch some fresh U.S. economic data and await the next drama out of Europe.
The European Central Bank's rescue of the region's banks by showering them with cheap loans could be creating the conditions for another financial crisis several years from now. The New York Times reports.
"We are facing destruction. Our country, our home, has become ripe for burning, the center of Athens is in flames. We cannot allow populism to burn our country down," one lawmaker told parliament as protesters took their rage to the streets.
Economists fear that the loans provided by the European Central Bank could create conditions for another banking crisis several years from now, The New York Times reports.
Greece has found itself in a category of its own among struggling debtors — a nation Europe no longer trusts, The New York Times reports.
"I think the EU was a little harsh with the Greeks. It looks like they were trying to push them out of the euro zone. It could get bumpy next week,” said trader Art Cashin.
This could be a make or break weekend for Greece, strategists say. Here's how to play the uncertainty.
"The distinction between Greece and Italy from the point of view of markets is massively different" than a few years ago, Italian Prime Minister Mario Monti told CNBC.
Mario Monti, Prime Minister of Italy, discusses his meeting with President Obama: "The goal was to explain to the President what Italy is doing in terms of budgetary discipline but also for preparing for conditions for growth."
If Greece doesn't have to pay what it owes, why should anyone?
The setback on the Greek austerity plan is sapping euro strength.