Financial Crisis Spawning Social Upheaval

As the need for a workable plan to get Greece's finances in order rises, the people of Greece have responded by shutting the country down with a massive strike. In one interview after another, protesters disavow any responsibility for the debt crisis and refuse to assume any of the burdens of solving it. Apparently, they prefer a bailout by their wealthier European neighbors. There strikes are broader than ever, and have turned into clashes with the police, which are firing tear gas at the crowds. It's unlikely that German or French taxpayers will support a bailout of Greece. How does this end? Badly. But most parties are in denial. Greek Deputy Prime Minister Theodoros Pangalos said in interview with the BBC that the strike is "mild" and that the government isn't worried. And bond investors seem to be betting against a default.

So far, the winner in this the United States. Despite its own financial and economic turmoil and its massive and growing public debt, the U.S. economy seems like a relative safe haven from the rising problems in Europe, and possibly in China. The cost of insuring U.S. Treasury debt is falling relative to other sovereign credits. That could help promote lower interest rates for the U.S., which are an important factor in capitalizing small business and getting U.S. workers back on the job.