Will the agreement in Greece calm financial markets?

Leaders in Greece agree to form a unity government.



(MoneyWatch)  
There is news that  Greek prime minister Papandreou has agreed to step down and make room for a new interim government, and that Italian Prime Minister Berlusconi is considering stepping down. How will this impact financial markets? It should help some, we'll know for sure when they open, but the new Greek government will still face a difficult set of problems, as will Italy, whether Berlusconi is in charge or not. The debt problem, general economic malaise, and the social and political problems that come with the proposed resolution to the crisis will still be present. Ultimately it will depend upon the new governments' ability to convince people to accept the costs that come with any agreement to resolve the debt crisis. So far, that's been a tough sell.
What impact could this have on the US? Many analysts believe the US economy is relatively sheltered from shocks in Europe, but financial problems have a way of spreading much further and deeper than anticipated and the last thing the US economy needs right now is a negative shock that puts a further drag on the recovery.o far, Europe has managed to do just enough to avoid a major meltdown, but time is running out and as worries mount other countries such as Italy are increasingly in danger. Let's hope this time is different and this is the first step toward Greece and Europe more generally solving their problems.