Trouble in Eurozone Accelerates

Greece's debt is now rated below junk. Default is likely and investors are holding back. No good news from Ireland and Portugal. Spain's effort to deal with 20% unemployment has backfired and it's socialist government lost local elections by wide margin. Its not likely that conservative austerity will work better than socialist austerity to lower unemployment.

To make matters worse, the stronger economies, Germany and France, are slowing down and that may limit their ability to bailout the southern tier of the eurozone. The euro has weakened in response to the latest news.