Comparison of effects Greek economic woes could have on America

           We discussed on Friday the uncertainty about how the collapse of the Greek economy and their default on their loans would affect the United States of America. I looked at two different articles that presented different "What if?" situations about how the world economies and markets would receive another bailout or the withdrawal of Greece from the Euro currency. 

            In 

Why Greece's economic collapse is a nightmare for Barack Obama, Nile Gardiner of the Telegraph offers two possible solutions to the predicament that America will find itself in. First, the author insinuates that "The dire situation in Greece is a stark warning for the United States if it continues down its current path of profligate spending. The debt and broader economic crisis in Europe is merely the shape of things to come for America unless it reverses course." The choices that Europe makes can have a definite and dire effect on our economy and the Obama administration repeatedly advocates the "big government solution abroad and at home." He wants Europe to bail out Greece rather than allow for greater economic freedom, and deregulation of labor markets or national sovereignty. The Obama administration looks to EU  to bailout and backs the rise of a European superstate. As Vice President Joe Biden put it, “we did our bailout. They've got to do their bailout.”

            In How Greek economic woes could help consumers, Ron Scherer of the Christian Science Monitor,  presents how although interest rates have been falling, the misfortune of Greece could be better for consumers. In economic uncertainty, people look for a "safe haven" to put their money and they choose to invest in American Securities, making the interest rate go down without the help of the Federal Reserve. The reason is capital flight from Europe. The president of Greece noted on Tuesday that, "almost $900 million had been withdrawn from the country's banks in a single day." This translates into US lenders dropping their rates on new-car loans and mortgages.The United States government can also benefit from the lower interest rates considering that we apportioned $251 billion for interest alone to help pay back our debts.
        The down side is that the interest rates will not go down for credit cards because they operate under the London Interbank Offered Rate (LIBOR) system.
      The two articles represent different points of view on a potential boon or curse. Considering that Americans are still convinced that we are in a recession, the fluctuation of the economies in Europe are reflective of our own instability our dwindling confidence in the government and the rising debt that could result in an American default.