As recently discussed, sovereign debt may well be the next crisis point in the world’s unstable financial system. In breaking news, things aren’t looking too rosy right now:
Standard & Poor’s downgrade Greek credit rating to junk status
Fears that financial crisis may spread to other eurozone countries
Stock markets around the world plunged today after Standard & Poor’s cut Greece’s credit rating to junk status and downgraded its view of Portugal in the clearest evidence yet that the European sovereign debt crisis is spreading. Italy and Spain are also viewed as vulnerable.
In London, the FTSE 100 index closed down more than 150 at 5603, a fall of 2.6%, and there were big falls in share prices in Athens, New York, Paris and Frankfurt. …
The FTSE’s fall today was the worst day’s performance since 26 November last year when worries about debt in Dubai gripped investors. By the time London closed, Wall Street was about 125 points lower, with investors ignoring better than expected US confidence figures as the news of the S&P downgrades filtered through. In France the CAC 40 fell 3.82% while the German Dax ended 2.73% lower.
Too big to fail? Time for another good old fashioned Socialist Big Government bailout? It’s only delaying the inevitable…
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