The U.S. central bank will most likely ease monetary policy when it meets this week as recent data point to a worsening labor market and the crisis in Europe intensifies, Goldman Sachs said.
CNBC's John Harwood reports on the details of President Obama's comments on the Greek election; and CNBC contributors Steven Rattner and Tony Fratto, and Steve Forbes of Forbes Media, weigh in. "At the end of the day, the voters are going to understand that President Obama saved this financial system and this economy," says Rattner.
The "drama" in Greece has to end for the sake of Greece itself and the euro zone, George Papandreou, former Prime Minister of the country, told CNBC Monday.
The likelihood of Greece exiting the euro zone over the next 12 to 18 months remains between 50 and 75 percent even after pro-bailout parties that plan to stick to European Union-imposed austerity won a victory in Sunday's elections, analysts at Citigroup Global Markets, the brokerage and securities arm of Citigroup, said on Monday.
Investors expressed relief over the projected victory of pro-bailout parties in the Greek elections on Sunday, but they quickly turned their attention to the structural problems in southern Europe that continue to threaten the global economy, the New York Times reports.
While the victory of pro-bailout parties in Greece brought cheer to the markets on Monday, one expert warns it will not go a long way in boosting the debt-laden country’s economic prospects.
Ian Bremmer, President at Eurasia Group says to expect more conversations between major central banks at the G20 meeting.
New Democracy may have won the largest share of the vote in the Greek elections which have held markets in thrall for weeks — but leader Antonis Samaras is unlikely to be cracking open the ouzo quite yet.
Recent weeks have seen the rhetoric from both sides of the Greek tragedy ramped up with naysayers claiming the days of the Hellenic Republic’s membership of the euro zone are numbered, and others insisting the bloc will stay intact come what may.
The head of the European Central Bank and other euro zone leaders worked on Saturday on a grand vision for the euro zone meant to reassure investors and allies that flaws in the currency union will be addressed quickly.
The estimated 1.4 billion euros ($1.8 billion) spent on bribes by Greeks last year wouldn’t pay off its bailout debts, but it might give its people more spare cash to deal with belt-tightening elsewhere.
As Greeks prepare to go to the polls on Sunday June 17, the fate of the euro and the recovery of the global economy could rest in their hands. But the biggest pain could be felt closer home as the country suffers through a fifth year of recession.
In a Europe where the outcome of most elections is predicted weeks before votes are cast, the triumph of left-wing Syriza in May’s Greek elections was one of the few shocks of recent years.
CNBC's Steve Liesman has the latest details on a report that says European Central Bank president Mario Draghi stands ready to support the euro zone's banking system.
The supply of healthcare and medicines in Greece is already increasingly difficult – and if the country left the euro, the situation would get even worse, Greek healthcare officials have warned CNBC.
“We are moving from being a Western country to a poor country,” George Protopapas, national director of international charity SOS Children’s Villages, told CNBC.
Europe’s currency union may be inching ever closer to the brink of collapse, but Chancellor Angela Merkel has a message for those pressing her to ride to the rescue: Germany is not as strong as it looks, and certainly not strong enough to prop up the rest of Europe, the New York Times report.
The markets jump on reports central banks are putting plans in place to prepare for the Greek elections; UK bankers say they will take whatever steps necessary to protect their currency; the video game industry continues its free fall; Allen Stanford is sentenced to 110 years in jail.
Speculation that major central banks are planning coordinated action heightened on Friday on a media report that Group of 20 nations are preparing to provide liquidity to financial markets.
If Angela Merkel had been president of the U.S. in 2008 and 2009, the Federal government would not have invested $700 billion to bail out the financial and automobile industries.