Greek Debt, Europe Debt | featured news

Moody's Investors Service downgraded Greek debt by four notches to junk status. It follows Standard & Poor's, which put the debt-laden country in the speculative-grade camp almost seven weeks ago.

The European Union agreed on a 500 billion-euro ($670 billion) emergency fund in the early hours of Monday to protect highly indebted eurozone countries from the "wolfpack" of financial markets.

European debt problems sent another wave of pessimism through the markets.

The move by Standard & Poor’s on Tuesday deepened Europe’s debt crisis, and investors sold off government bonds amid fears of a default.

Wall Street did not create Europe’s debt problem, but bankers enabled Greece and others to borrow beyond their means, in deals that were perfectly legal.