Fear Grips Europe as Greek Crisis Threatens to Spread

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By Heather Horn

Yesterday, Standard & Poor’s again downgraded Greece’s debt, this time to junk level, and downgraded Portugal’s as well. Stock markets across Europe dove on the news, confirming fears of bearish analysts that the Greek crisis woulde prove contagious. The New York Times quotes an Irish economics professor comparing Greece to Lehman Brothers. Just how bad is it? The resounding answer from the financial commentariat: bad.

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