S&P on Greek Debt Downgrade to Junk Status: Options Are Narrowing

Standard & Poor's credit analyst Marko Mrsni explains the Greek debt downgrade to junk status:

The downgrade results from our updated assessment of the political, economic, and budgetary challenges that the Greek government faces in its efforts to put the public debt burden onto a sustained downward trajectory

We believe that the government's policy options are narrowing because of Greece's weakening economic growth prospects, at a time when pressures for stronger fiscal adjustment measures are rising.

There is no way this stops with Greece. The PIIGS, Portugal, Italy, Ireland, Greece and Spain, are about to become bacon.