In recent months, you no doubt have noticed that much of the U.S. stock market’s volatility is somehow related to the debt crises in Greece. When news out of Greece is bad – that is, when it looks as if Greece may not be able to repay its world debts – it has a direct impact on the U.S. stock market.

But why? Why should American investors worry so much about what happens in a small European nation across the ocean?

The answer is two-fold. (more…)