Greek crisis at the tipping point

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    Jun 16, 2011 2:56 PM GMT

    Have Europe's leaders kicked the Greek can as far as it will go?

    Unnervingly, it is starting to look like the answer may be yes. Policymakers this week failed yet again to take decisive action on Greece's debt crisis, rattling markets and prompting billionaire George Soros to brand officials' failure to restructure Greek debt a "mistake."

    The central problem -- beyond Greece's running out of money again -- is a standoff between bailout-shy politicians and instability-fearing central bankers. The assumption has been that they would come to their senses and make a deal to forestall catastrophe.

    But their little game of chicken souvlaki now threatens to jolt Europe and perhaps the world with a new financial disaster.

    On cue, Moody's warned Wednesday that a Greek default – which is looking likelier by the day -- could ripple across the European banking system. It put three big French banks on review for a possible downgrade and warned that other reviews may follow.

    The ramifications could end up being widespread. Not so much because of fears that others will collapse but the institutions that hold Greek debt may be in trouble.
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    Jun 16, 2011 3:24 PM GMT

    Could a Greek Default Destroy American Money Market Funds? Answer: Maybe.