Desmond Lachman has a very clear presentation on how bad Greece is, and how it affects the US.
A small extract below (but please click on the link and read the whole article):
The recently agreed US$140 billion IMF-EU program for Greece envisages that Greece aim to reduce its budget deficit from 14 percent of GDP at present to below 3 percent of GDP by 2012. It also envisages that Greece aims to restore international competitiveness through domestic price and wage deflation. If the experience of Latvia and Ireland, two countries that are engaged in savage budget retrenchment within a fixed exchange rate system, is any guide, Greece could very well see its GDP contracting by 15-20 percent over the next three years.
The IMF acknowledges that Greece’s public debt to GDP ratio will rise to 150 percent of GDP by 2012 on a relatively benign economic outlook. If instead Greece’s GDP were to decline by 15-20 percent over the next three years and if the Greek government were obliged to provide major financial support to its banking system, Greece’s public debt to GDP ratio could very well rise to 175 percent.
It is little wonder then that markets consider that Greece has a solvency problem that is not being addressed by the massive IMF-EU support package.