Knowledge@wharton

Warning signs are flashing red. Bond markets are projecting a 98% chance of default on Greece’s debt. Stock prices for French banks heavily invested in that debt have plunged 10% in recent days. Has the European debt crisis hit the breaking point with Greece -- and perhaps others -- soon to exit the eurozone? Or will officials once more cobble together new agreements that keep Greece in the club and prevent a huge contagion effect likely to cripple an already slowing global economy? Wharton finance professors Franklin Allen and Bulent Gultekin offer their insight. See acast.com/privacy for privacy and opt-out information.