Does the crisis in Greece really threaten the US? You bet. It's a small country and an even smaller economy, but its difficulties threaten the whole European Union--a huge economy and vital US export market. If Europe cannot get on top of its problems, the US will not escape without injury.
Today global markets lapped up the new emergency arrangements the EU announced over the weekend. These were needed, but they fail to address the underlying issues. Only when the new EU-wide emergency lending program actually starts to be called upon will we see if the EU can follow through. And that is not all. Package or no package, Greece is still at risk of default--and for many of its members, the euro still looks like a suicide pact. My new column for the FT considers the implications for the US.