(NEW YORK) -- European finance ministers and International Monetary Fund officials met Sunday to discuss a new bailout package for Greece, but there are questions about whether even a second cash infusion in a year will turn the Greek economy around.
There have been violent demonstrations in Athens, protesting government efforts to implement the demands of the country's creditors, which include spending cuts and tax hikes.
While the United States is not a direct participant in the talks, the process is being watched anxiously from Washington, because if Greece does default on its debt, it could have a ripple effect across Europe and the United States.
"We've discovered that the United States is very interconnected with the rest of the globe in the last couple of years," Jon Hilsenrath, the Wall Street Journal's chief economic correspondent, said Sunday on ABC's Good Morning America. "Our economy is very vulnerable to shocks right now. It's not like we were in the 1980s and the 2000s when the shocks like Hurricane Katrina or the tech bubble burst and the economy kind of sailed right through."
"What we've seen in the last 12 months with an earthquake in Japan, European financial turmoil last year, that when there are bumps outside of the U.S., it slows us down," he said. "Our own economy is going through a slowdown right now, so we have to be very attuned to what's happening in the rest of the world."
Greek Prime Minister George Papandreou said that in exchange for another financial aid package, Greece would make rigorous revisions to its constitution. But it is not clear whether a second rescue package would stop Greece from becoming the next Lehman Brothers, especially since the first rescue package did not work.
"[The bailout] prevents a crisis, a crisis that was staring us in the face last week, from happening. But it does not solve the underlying problem of too much debt that the Greeks have out there," Hilsenrath said.
"We also have to remember that there are other countries like Portugal, Ireland and Spain that are dealing with similar problems," he said. "So I certainly think that we should not just discount the possibility that there could be more financial turmoil in the future in Europe that rebounds back to the United States."
Copyright 2011 ABC News Radio