Obama says Greece won't be 'major shock' to U.S. financial system

President Barack Obama said on Tuesday the financial crisis in Greece should not create a major shock for the U.S. economy, but warned that its fallout could dampen global growth and encouraged both sides to reach a deal.

"In layman's terms for the American people, this is not something that we believe will have a major shock to the system," Obama said during a news conference with Brazilian President Dilma Rousseff at the White House.

"But obviously it's very painful for the Greek people, and it can have a significant effect on growth rates in Europe."

If a deal is not reached between Greece and its creditors in the coming hours, Athens would default on a loan to the International Monetary Fund, a move that could trigger an exit from the euro zone and knock the European economy.

Obama said if Europe's economies are affected, that would tarnish the rest of the world .... http://www.reuters.com