Fears of 'Lehman-style' tsunami as crisis hits Spain and Portugal

[cory777]

Source: Telegraph.co.uk

By Ambrose Evans-Pritchard
Published: 7:29PM GMT 04 Feb 2010

The Greek debt crisis has spread to Spain and Portugal in a dangerous escalation as global markets test whether Europe is willing to shore up monetary union with muscle rather than mere words.

Julian Callow from Barclays Capital said the EU may to need to invoke emergency treaty powers under Article 122 to halt the contagion, issuing an EU guarantee for Greek debt. “If not contained, this could result in a `Lehman-style’ tsunami spreading across much of the EU.”

Credit default swaps (CDS) measuring bankruptcy risk on Portuguese debt surged 28 basis points on Thursday to a record 222 on reports that Jose Socrates was about to resign as prime minister after failing to secure enough votes in parliament to carry out austerity measures.

Parliament minister Jorge Lacao said the political dispute has raised fears that the country is no longer governable. “What is at stake is the credibility of the Portuguese state,” he said.

Read more: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7159456/Fears-of-Lehman-style-tsunami-as-crisis-hits-Spain-and-Portugal.html

[SpiralHawk]

1. "Saturn is square Pluto." - Ronald Reagan's Dead Republicon Astrologer*

"As we republicon occultists know, Saturn square Pluto is the celestial signature of planetary Shock & Awe. Smirk."

- Ronald Reagan's Dead Republicon Astrologer*

* Courageously channeled by the intrepid SH from the vast netherworld of Republicon occultism.

[Po_d Mainiac]

5. u fergut to divide by u'ranus squared...aka

hemorrhoid.....kinda like an asteroid, but more personal :hide:

[glowing]

2. Yes, thought of a disaster allows these independent countries to allow their

independence taken and ruled by the EU. Shock Doctrine in Europe.

[aquart]

4. And?

[Warpy]

3. Bankers are calling them the PIGS

Portugal, Italy, Greece and Spain. They are the next big shoes to drop.

[Po_d Mainiac]

6. The US already walked in that.n/t