In the simplest of simplest terms: how is the Greek debt crisis affecting the U.S? We asked FOX Business Network’s David Asman, anchor of After the Bell. 

How did we even get here?

ALSO READ: 3 Mistakes that Dividend Investors Make

Europe got here by letting Greece and other countries lie about their government debt/GDP ratio. This was supposed to be part of the deal for Euro membership – that you’d stick to the agreements about not building up too much debt – which would threaten the value of the euro. Greece isn’t the only one. Spain and Portugal and Italy constantly lie about growth and tax revenue and debt.

Why do we care so much? Greece’s economy is teeny tiny, isn’t it?

We care about Greece because if it gets away with not paying its bills, a lot of other Euro countries, like Spain, Italy, Portugal and Ireland will say: “Why should we pay if Greece doesn’t have to?” And if that happens, the $353 billion owed by Greece will be multiplied many times and add up to more trillions than the banks and other bondholders could afford.

greek debt

How is the Greek debt crisis affecting the US economy?

So far the only major way this has affected the U.S. is in companies and banks that deal with Greece. But if the Obama Administration continues to lobby on behalf of the Tsipras government – which it has done for several weeks now – we could see pressure put on the IMF to dole out more money, a lot of which has been ponied up by U.S. taxpayers.

Is there anything we can do? What about our government? 

What we can do is put pressure on the IMF NOT to pay out taxpayer dollars to bail out the banks and other bondholders…again!

So just how messy is it out there? What does the crisis mean for American consumers and investors?

So far stocks are still high and rates still low. Investors have too much invested in the market to sell out quite yet. The greed factor is very much in play. Even some CEOs think their companies’ share prices are too high. Netflix CEO Reed Hastings just said: “When the stock was half this price I described it as euphoric. So it’s a mystery to me.” Me too, Reed! Me too.

What happens next?

What happens next is more of the same. More bailouts. More money being printed to pay for the bailouts. And a bigger bubble. Whether it can be deflated before it pops will mean the difference between a correction and a tough recession for U.S. consumers and investors.

To learn more, head over to Wall Street Survivor.

Important Reminder!

The Motley Fool Stock Advisor ranks as our #1 Best Investment Newsletter for the third year in a row.

Their stock recommendations continue to beat all of the other newsletters and they maintain a very high accuracy of their picks. Their 24 stock picks from 2018 have outperformed the market by an average of 44% as of July 7, 2019. Read that again. I didn’t say their stock picks are up an average of 44%, I said they have BEAT THE MARKET by 44%.

No other newsletter comes close to that. You may have seen the Motley Fool’ advertisements that their picks are up 367% compared to the market’s 80%. Is The Motley Fool’s Stock Advisor really as good as they claim?

Our results, at least since January 2016, suggest YES. You can now get their latest stock picks for ONLY $19/month or $99/year. But this is a special limited time offer. It expires tonight at midnight.

Get the Motley Fool's Latest picks

P.s. this offer is still backed by their 30-day guarantee