Greece, Italy, And The European Debt Contagion
Talk about a trick or treat! In the week leading up to Halloween, investors were treated by news that European leaders had finally settled on a credible bailout package for Greece. The Dow shot up to its highest point since mid-summer. But then came the Halloween trick – Greek Prime Minister George Papandreou called a surprise referendum on the bail-out package. The Dow promptly shed several hundred points. In the meantime, the debt contagion has now spread to Italy. Ugh! Here to help us sort through the lingering tricks and treats is our financial guru, Bob Pozen (above). Bob Pozen is senior lecturer at Harvard Business School, chairman emeritus of MFS Investment Management, senior fellow at Brookings, and author of The Fund Industry: How Your Money is Managed.