Austerity

The credit rating agency Moody's downgraded seven German banks today, noting their exposure to Europe's debt problems and slower economic growth.

Today, Ireland is holding a referendum on whether to ratify Europe's new fiscal discipline pact. A vote against the treaty would challenge German-backed austerity measures.

In the last week, we've heard of a possible Greek exit from the euro, a U.S. debt ceiling showdown, HP layoffs, and a Facebook stock lawsuit. How does this news affect our psyche and what stories should we focus on amid all the turmoil?

Europe is debating the two. So, too, are many in the States. Frank Newport at Gallup talks about what Americans are saying about austerity here and in Europe.

President Obama will be with world leaders in Chicago today after meetings at Camp David over the weekend. The takeaway from those meetings is that there should be more of a focus on growth rather than austerity as Europe grapples with another flare up in the debt crisis.

German Chancellor Angela Merkel is sending the message that she is committed to keeping Greece in the eurozone. In an interview with CNBC, Merkel says that she is open to stimulus programs. Now, that could be seen as a shift at at a time Greeks are blaming austerity imposed by Europe for their woes.

In a narrow victory this weekend, French voters ousted incumbent presidential candidate Nicolas Sarkozy in what many see as a popular referendum against harsh austerity measures in Europe

This weekend, voters in both France and Greece will go to the polls, and the expectation is that they'll be in a bit of an anti-austerity mood. One clue came yesterday in the U.K. where voters delivered big losses to the ruling Conservative party.