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

(THE TELEGRAPH) — 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.”

via Fears of ‘Lehman-style’ tsunami as crisis hits Spain and Portugal – Telegraph.

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