A New York judge has denied bail for International Monetary Fund chief Dominique Strauss-Kahn, who is charged with sexually assaulting a hotel maid on Saturday. As lurid details of the alleged attack circulate, calls have erupted for Strauss-Kahn to resign. Officials inside the IMF said the scandal is a "disaster" for the organization and its efforts, led by Strauss-Kahn, to resolve Europe's debt crisis. Could this feed the financial turmoil overseas, and drag the U.S. economy back into recession?
Yes, it is that bad: Strauss-Kahn has been "particularly flexible with Greece during bailout talks," says The Huffington Post. "With his arrest, the prospect of a quick resolution to the Greek situation has been cast into doubt." If Greece or another struggling European country goes under, the economic recovery in the U.S. — and across the world — could be in jeopardy.
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