european sovereign debt

How Shock Waves Will Hit US If Greece Drops Euro

Bankers, governments and investors are starting to prepare for Greece to stop using the euro as its currency, a move that could spread turmoil throughout the global financial system. The worst-case scenario envisions governments defaulting on their debts, a run on European banks and a worldwide credit crunch reminiscent of the financial crisis in the fall of 2008.

Too Complacent About Europe's Stress Tests?

After banks stocks took a beating when the EU first announced it would stress-test the region's banks, the sector has recovered and then some. This could be good news, but more likely it means investors will be surprised to the downside.

Moody's Slashes Portugal's Debt Rating

Moody's credit rating agency downgraded Portugal's debt by two notches Tuesday, to A1 from Aa2, citing weak growth and climbing debt levels over the past two years that will continue to sap the country's fiscal strength. Moody's expects conditions to continue to deteriorate for at least another two to three years before stabilizing.