Debt Crisis

Greece, investors strike debt deal

ATHENS, Greece — Greece and investors who have bought its bonds have reached a tentative deal to significantly reduce the country’s debt and pave the way for it to receive a much-needed (euro) 130 billion bailout.

A graph shows the fall of the Euro in Paris, Friday, Jan. 13, 2012. The euro fell to a 17-month low against the dollar on news reports that France’s credit rating might be downgraded by Standard & Poor’s. If France were downgraded it could hurt efforts to resolve Europe’s debt crisis. (AP Photo/Remy de la Mauviniere)

Standard & Poor’s defends mass European downgrade

PARIS — Amid a wave of criticism, Standard & Poor’s defended its decision to downgrade nine European countries and insisted Saturday that the region’s leaders aren’t doing enough to solve their debt crises.

(MICHEL EULER/The Associated Press) France’s President Nicolas Sarkozy awaits German Chancellor Angela Merkel to discuss Europe’s financial crisis at the Elysee Palace in Paris, Monday , Dec. 5, 2011. The leaders of Germany and France will try to agree on Monday on a cohesive plan to help save the euro through stricter oversight of government budgets.

Sarkozy says eurobonds not a solution to crisis

PARIS — French President Nicolas Sarkozy says a jointly issued bond by all the countries that use the euro is not the solution to the continent’s debt crisis.

(EMILIO MORENATTI/The Associated Press) A man sleeps on the ground as he spends the night at the Catalunya square during a protest in Barcelona city, Spain, Sunday Nov. 13, 2011. Another troubled European government will almost surely tumble this weekend as Spanish voters braving sky-high unemployment, the sting of austerity, piles of debt and a bleak future are expected to dump the ruling Socialists and hand their national mess to opposition conservatives. Polls point to a crushing win on Sunday and perhaps even a huge majority in Parliament for the Popular Party led by Mariano Rajoy. The banner reads in Catalan “Indignation”.

Job-hungry Spaniards seen electing center-right

MADRID — Another troubled European government will almost surely tumble this weekend as Spanish voters braving sky-high unemployment, the sting of austerity, piles of debt and a bleak future are expected to dump the ruling Socialists and hand their national mess to opposition conservatives.

(GREGORIO BORGIA/The Associated Press) Italy’s premier-designate Mario Monti speaks to the media after finishing his meetings with Italian political leaders and civil society organizations’ representatives at the Senate, in Rome, Tuesday, Nov. 15, 2011. Monti will submit his list for a new government to the Italian president Giorgio Napolitano on Wednesday.

Monti forms new Italian government

ROME — Economist Mario Monti announced Wednesday he has formed a new Italian government, opting to put technocrats instead of bickering politicians in his cabinet to enact reforms that can save the country from financial disaster.

(PAUL WHITE/The Associated Press) Businessmen walk past a betting shop in the business district of Madrid, Thursday Oct. 27, 2011. European stock markets shot higher Thursday as investors waded into riskier assets, emboldened by EU leaders’ pre-dawn agreement to slash Greece’s massive debts. In addition, the 440 billion euro European Financial Stability Facility will be used to insure part of the losses on the debt of wobbly countries like Italy and Spain, rendering its firepower equivalent to around one trillion euro ($1.4 trillion).

US stock futures follow European markets lower

NEW YORK — U.S. stock futures are following European markets lower Tuesday. But the losses were trimmed after a stronger than expected U.S. retail sales report.

(ANDREW MEDICHINI/The Associated Press) In this Friday, July 15, 2011 file photo, Italian Premier Silvio Berlusconi votes over a crucial euro70 billion ($99 billion) austerity package aimed at convincing investors that the eurozone’s third-largest economy won’t be swept into the debt crisis, at the lower house of parliament, in Rome. Pressure mounted on Premier Silvio Berlusconi to resign so a new government could pass the economic reforms Italy needs to avoid financial disaster, as the country’s borrowing rates spiked Monday, Nov. 7, 2011, and talk of early elections intensified.

Key Berlusconi ally urges him to step aside

ROME — Silvio Berlusconi’s main coalition ally urged the Italian premier to step aside Tuesday as political uncertainty in the eurozone’s third-largest economy rocked financial markets for yet another day.

(MEL EVANS/The Associated Press) In this Oct. 20, 2009 file photo, then New Jersey Gov. Jon S. Corzine answers a question during an interview with the Associated Press, in Trenton, N.J. The firm, MF Global, said Friday, Nov. 4, 2011, Corzine has resigned as chairman and CEO and will decline payments from a severance package worth $12.1 million, including cash and benefits.

Corzine steps down at collapsed firm, hires lawyer

WASHINGTON — He set out to create a mini-Goldman Sachs. In the end, he built a mini-Lehman Brothers.

(PETROS GIANNAKOURI/The Associated Press) This Wednesday, Nov. 2, 2011 file photo shows Greece’s Conservative opposition leader Antonis Samaras addressing conservative members of parliament in Athens. Greece’s prime minister struggled Saturday Nov. 5, 2011 to form a temporary coalition government, faced with opposition calls for immediate elections that have extended a political deadlock in the debt-shackled country. George Papandreou has agreed to step aside if necessary to help his Socialist party hammer out a four-month coalition he says is vital to securing a new debt deal worth an additional euro130 billion ($179 billion). But his offer was snubbed hours later by opposition leader Antonis Samaras. “We have not asked for any place in his government. All we want is for Mr. Papandreou to resign, because he has become dangerous for the country,” Samaras said in a televised address. “We insisted on immediate elections.”

Greek premier struggles to end political deadlock

ATHENS, Greece — Greece’s prime minister struggled Saturday to form a temporary coalition government in the near-bankrupt country, extending a political deadlock threatening billions in international rescue funds.

Stocks slide as IBM, French debt weigh on markets

NEW YORK — Stocks slid in early trading Tuesday after disappointing corporate earnings reports and concerns that France and Germany may not reach an agreement to provide additional support for Greece.

(PETR DAVID JOSEK/The Associated Press) Richard Sulik, center, leader of the Freedom and Solidarity Party and Parliamentary Speaker of Slovakia starts a Parliament session during which the lawmakers will vote on approval for more power to the EU bailout fund, in Bratislava, Slovakia, Tuesday, Oct. 11, 2011. Slovakia is the last eurozone country to vote on the fund. The 17 nations that use the euro must all approve expanding the powers of the bailout fund, which is designed to shore up Europe’s defenses against the debt crisis.

Stock dip ahead of Slovakia vote on rescue fund

NEW YORK — Stocks are falling on worries that Slovakia might not approve a plan to strengthen Europe’s bailout fund. That could complicate efforts to deal with the region’s debt crisis.

(JIM COLE/The Associated Press) Republican presidential candidate Rep. Michele Bachmann, R-Minn., brings out money to pay for items she bought during a campaign stop at Zeb’s General Store Sunday, Oct. 9, 2011, in North Conway, N.H.

Bachmann: Debt ceiling fight kept her out of NH

NORTH CONWAY, N.H. — Republican presidential hopeful Michele Bachmann said Sunday that her unsuccessful fight against raising the federal debt ceiling kept her away from New Hampshire for nearly four months, but she’s still committed to winning over voters in the key early primary state.

Greek Minister of Finance Evangelos Venizelos speaks during a news conference in Athens, on Tuesday, Sept, 27, 2011. Greece will receive its next batch of bailout loans in time to avoid a disastrous default, the finance minister said Tuesday, while the prime minister pledged ahead of talks with Germany's leader that Athens will fulfill all its austerity pledges.(AP Photo)

Greece: will get loans in time to avoid default

BERLIN — Greece will receive its next batch of bailout loans in time to avoid a disastrous default, the finance minister said Tuesday, as stock markets rallied on hopes that the prime minister will discuss new ways of solving the crisis with Germany’s leader later in the day.

Give $100 to reduce national debt, says Texas man

ABILENE, Texas -- Douglas Powell Sr. sent a $100 cashier's check made out to President Barack Hussein Obama in August to go toward the national debt.

The 65-year-old Texan believes he's doing his part to help solve the government's economic woes.

And he wants others to do the same.

(JOSE LUIS MAGANA/The Associated Press) IMF Managing Director Christine Lagarde speaks during a news conference at IMF/ World Bank Annual Meetings at IMF headquarters in Washington, on Saturday, Sept. 24, 2011, as Singapore Finance Minister Tharman Shanmugaratnam, second from left, looks on.

World powers seek to contain Europe debt crisis.

WASHINGTON — Global finance officials pledged on Saturday to take bolder moves to confront a European debt crisis that threatens to plunge the world into another deep recession. But sharp disagreements about exactly what to do can’t offer much reassurance to markets rocked by uncertainly in recent weeks.

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