why does everyone think that because of Greece's economy problem.....?

This is very complicated and I am no genius.

As i see it the main 2 impacts are:

Impact 1 - Because Greece is suddenly very unstable financially, investors and companies get nervous about doing business with anyone linked to it. This means that banks stop lending money to each other. As we have seen today the stock markets are also affected because of lack of investor confidence. Not just Greece but other stock markets also suffer and the euro becomes significantly weaker against other currencies. This in turn again affects trade. So we take a big step back to where we were 18 months ago.

Impact 2 - Is closely related. Because Greece has the Euro, investors start to look at what one country dragging the currency is doing to the the rest. Yes, Greece is being bailed out but by other euro counties. This means people will ask 'Does this leave them short of capital?' Are there any other EU countries also short of cash? This leads to investor uncertainty There has already been discussion about Greece dropping out of the Euro zone. In my opinion this would effectively write off Greece economically but would also risk the whole Euro thing falling apart as all the countries might just take an "everyman for himself" attitude.

I don't think the world will end and I don't think jesus is going to come back.

But I do understand why people are worried...the 2nd world war really came about because of the great depression...and it ended the depression.

I'm definitely not an expert but serious financial problems seem to end in serious amounts of death - population reduction, war seems to produce an aufschwing....er, financial recovery...in short if we don't sort this out soon - we may well be f*cked. Conspiracy theories aside..I'm thinking the people with power might be thinking its time for a reduction in the amount of people they have to deal with...claims for unemployment, pensions, healthcare, etc will fall - if there are less people.

That sounds like a panic reaction.

When you hear some bad news you immediately grab hold of your head, run in circles and scream. Then you start talking about wild rumors.

Not everyone, I think that the problem in *socialist* Greece is a mirror in which WE should see ourselves if our *brilliant* government keeps wasting money.

Yes i agree.The media is on this one good.They really know how to keep the blood pressure elevated.