Greece Gets Hit By the Ugly Stick

ZH posts on Greece getting downgraded four notches by Moody's -

Moody's Investors Service has today downgraded Greece's government bond ratings by four notches to Ba1 from A3, reflecting its view of the country's medium-term credit fundamentals. Today's rating action concludes the review for possible downgrade, which Moody's initiated on 22 April 2010. Moody's has also downgraded Greece's short-term issuer rating to Not-Prime from Prime-1. Greece's country ceilings for bonds and bank deposits are unaffected by the review and remain at Aaa (in line with the Eurozone's rating). The outlook on all ratings is stable.

The Real Effect
If anybody thinks the markets are going to like this, they're out of their minds.

The spiral continues as debt becomes more and more expensive to service, it becomes more and more likely there will be a default. Look for news to start spreading that the "contagion" is spreading again, taking other countries with it as the wagons circle for the inevitable global crash.