Spain Downgraded as Contagion Spreads

Add Spain to the list, as it we didn't see this coming:

One day after cutting Greece’s status to junk and downgrading Portugal, a major ratings agency also cut Spain’s debt rating by a notch and the euro reached a one-year low, underscoring how difficult it will be for Europe to contain problems that started in Greece.

“Every day which is lost is a day where the situation is getting worse and worse, not only in Greece but in the whole European Union,” said Dominique Strauss-Kahn, managing director of the International Monetary Fund. “It’s the confidence in the zone which is at stake and that’s why we need to act swiftly and strongly.” After meeting here with Mr. Strauss-Kahn, Chancellor Angela Merkel of Germany seemed to find a new sense of urgency in dealing with the crisis. “It’s completely clear that the negotiations by the Greek government with the European Commission and the I.M.F. must now be accelerated,” she said. “Germany will do its part to safeguard the euro as a whole.”

Over the debt cliff they go, and don't you know its Germany's job to bolster these socialist states.