The European debt crisis is escalating.
The financial strain in Greece might spread to other nations most notably Portugal that was downgraded
yesterday. Interest rates on Italian government debt skyrocketed and bank stocks in Italy plunged.
Concerns span the continent, from Greece, Spain and Portugal to Ireland, whose debt was downgraded to junk status Tuesday by Moody's Investors Service, calling into question that nation's ability to financially survive on its own.
A crisis that began in the Mediterranean has become Europe's problem, and it risks becoming the world's. Markets the world over are riveted by developments among the countries that share the euro, which appear only to be weakening.
Policymakers are scrambling to craft a fix, but financial players and economists fear governments will not be able to do enough to stem the contagion.
The Euro nations and the IMF will be left holding
the bag which will soon be empty.
Sheila McKinney
