The financial crisis in Europe has "entered a potentially disastrous phase," the New Yorker reports, with "dire consequences" predicted for the entire world—even America!—if the European governments don't take swift action. The Organization for Economic Cooperation and Development [OECD] released a report today warning that the euro crisis is "a key risk to the world economy," and the "contagion" could destroy even the pitiful economic recovery we've experienced here since the Great Recession officially began in December 2007. Here's a fun video about how we're all potentially doomed: more ›

In the ultimate economic Catch-22, New York's tourism office is worried that European travelers—who've been keeping the city afloat in these tough times—may stop coming now that the dollar is rising in value. XE currently says one Euro is worth $1.23, the lowest rate in a year. But NYC & Co, chief George Fertitta isn't worried yet, telling Crain's [subscription required], “European visitors who want to experience the energy and excitement of New York City will visit regardless of the cost and distance." more ›

Stock markets around the world are "slumping" and "jittery" over worries about European debt, led by Greece's problems. Riots in Greece have left three dead after a fire bomb was set in an Athens bank. Protesters, who have thrown rocks and Molotov cocktails at parliamentary buildings, are upset with the government's measures to "contain Greece's spiraling debt." The austerity measures include freezing wages and higher taxes. more ›

While the rising dollar may be good some people, some are warning that its strength could hurt NYC real estate and tourism. A former NY State deputy comptroller and NYU professor Rosemary Scanlon tells the Sun, "Europeans are going to start pulling back, to change business and personal vacation planning. [Foreign tourism] has been a really good buffer for us all summer, but now, we'll be much more at the mercy of whatever the local downturn may be." Another interesting scenario is foreigners betting against the Euro: "One international buyer who recently purchased the entire 10th floor of the I.M. Pei-designed Centurion Condominium at 33 W. 56th St., for example, asked to pay the $15.5 million price tag up front rather than at closing, in expectation that the euro would continue to weaken against the dollar, according to the director of sales at the Centurion." more ›

New York City has a buoy helping it resist the receding economic tide: Tourists. In particular, foreign tourists who are relatively flush with currency that has strengthened against the American dollar. The city's marketing agency NYC & Company says tourism increased by one million visitors during the first quarter of 2008 versus the same period in 2007, and that 20% of those visitors arrived from abroad. And last year a record 46 million visited the city! more ›

In a sign of these struggling economic times, more than a few New York businesses are making it clear that money is money, whatever the currency. Reuters spoke to a few business owners who explained why they are open to moneys from foreign lands. more ›