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What does the future hold for the Euro?

European leaders reached a deal Thursday they hope will be a major turning point in the Greek debt crisis that's been threatening to unravel the entire EU monetary system. After 10 hours of tense negotiations, leaders unveiled the plan yesterday.

It includes a significant reduction of Greece’s debts to be achieved by asking private creditors to accept 50 percent losses on the bonds they hold. It also calls for a strengthening of a bailout fund to prevent larger economies like Italy and Spain from being dragged into financial crisis.

Today stocks were mixed, but markets surged yesterday on news of the full plan, which could be a sign that investors will welcome it. But it also highlights how interconnected the world’s financial systems have become. What does yesterday’s market reaction say about that? What exactly is in this plan? Why should Americans care? What are the implications of one country, such as China, taking on so much world debt?

Guest:

Peter Coy, economics editor for Bloomberg Businessweek