The three-notch downgrade of Spain by Moody’s late Wednesday has had a drastic impact on Spanish bond yields, driving them up to 7% at the moment, the point at which market-based funding is thought to no longer be available to euro zone countries.
The continuing stream of half-measures being offered by various euro zone officials are not calming markets in the slightest.
It looks as though the Euro group will be dragged to enact more dramatic reforms, kicking and screaming.
The bright spot in Europe this morning? Greece, where hopes of a pro-bailout government are rising, prompting a short-covering rally in local markets.
