Eurozone faces Lehman-style meltdown

The Greek debt crisis is "threatening to overwhelm" the eurozone, said Sean O'Grady in The Independent. Last week, after another upward revision to Greece's deficit, along with Greece's formal request for €45bn aid from the EU and the IMF, Greek bond yields soared. They rocketed further this week as ratings agency Standard & Poor's downgraded Greek debt to junk status. Greek ten-year yields have hit 10%; two-year yields have gone beyond 16%. An S&P downgrade for Portugal caused a 0.5% spike in its ten-year yield. It also boosted the interest rates on the debt of other economies that are vulnerable to a debt crisis. more...