A weekend meeting of global finance ministers was sponsored by the International Monetary Fund to deal with the growing currency imbalances in world economies. The two big players -- the U.S. and China -- instead of reaching a consensus, ended farther apart with each side digging in and pushing back against the other.

Zhou Xiaochuan, China's central bank governor told the Financial Times: "The continuation of relatively low interest rates and unconventional monetary policies by major reserve currency issuers have created stark challenges for emerging market countries in the conduct of monetary policy."

According to the International Monetary Fund (IMF), the global financial system may be the biggest hindrance to a worldwide economic recovery. The IMF used its global financial stability report to make this announcement, one that suggests there isn't a lot of stability thanks mainly to the global financial system.

The IMF estimated that the writedowns attributed to the credit crisis were $2.2 trillion, lower than the $2.3 trillion originally projected in April.

Alcoa (AA), Marriott (MAR) and Yum! Brands (YUM) kick off the new earnings season this week. Analysts surveyed by Thomson Reuters are looking for moderate year-over-year earnings and revenue growth in the third quarter from each of these dividend payers.

Note that Marriott and Yum! Brands have exceeded consensus estimates in recent quarters and have First Call consensus buy recommendations as well. They are also trading near their 52-week highs, while Alcoa shares are closer to the 52-week low despite a 22% rise in the past three months.

Without giving much detail, George Soros says "The euro is a patently flawed construct."

Let's elaborate on this point. The greatest flaw in the euro is that it's a currency without a country. Instead you have a group of 16 countries that have agreed to use the euro as legal tender. This means that 16 separate political systems have agreed in principle to follow the rules of engagement, to use a military term. Those rules state that each country must keep its debt level to 3% of GDP.

The EU and the IMF have agreed on a €720 billion loan guarantee fund to stabilize the eurozone. The plan was formulated over the weekend to calm markets throughout the world and stabilize the euro.

As part of the plan, the European Central Bank stands ready to buy eurozone government debt if needed.

Of the €720 billion, €440 billion would be provided by eurozone members and a further €60 billion supported by EU members through the expansion of balance of payments facility. The remaining €220 million would provided by the IMF.

Greek workers and shopkeepers are disrupting basic services. Air traffic controllers and teachers walked off the job, closing flights and schools.

Some 18,000 persons are participating in the nationwide strike. They are protesting the austere measures imposed on them by the European Union and IMF bailout package. Protesters are carrying placards saying: "IMF OUT." The bailout package carries wage cuts for public workers, a three-year freeze on pensions, a second increase on sales taxes, and higher taxes on tobacco and alcohol.

Financial guru, Nouriel Roubini foresees rising sovereign debt leading to defaults.

Roubini predicted the U.S. financial collapse at least a year before it happened. Now he is predicting sovereign defaults for European Union (EU) nations.

When the financial meltdown struck in the United States in 2008, the contagion quickly spread throughout the world, including the European Union (EU). However, unlike the Federal Reserve, which has unilateral authority to act on behalf of the United States, the EU has no such authority.

The EU barely survived 2008 and 2009. Then this year, Greece had difficulty refinancing its sovereign debt. Again, unlike the United States, where the debt came from financial institutions, in Greece the debt is government debt.

Thursday's events in Europe provided some encouragement, if not universal calm, regarding the Greek debt saga, including the promise that Europe and the International Monetary Fund will now move relatively swiftly to put together a suitable package that will assist the Mediterranean nation's transition to fiscal solvency.

But even if Europe again show signs of "snatching defeat from the jaws of victory," investors should not anticipate a sudden return to the barter system, globally.