Europe Faces 'Lehman Moment'

Concerns about Greece roil financial markets.

The European Union’s failure to contain the Greek debt crisis is sending fresh shockwaves through currencies, money markets, equities and derivatives.

The euro lost more than 2 percent against the dollar in the past two days and the cost of protecting corporate bonds soared to the highest level since January, with credit-default swaps anticipating about a 78 percent chance that Greece won’t pay its debts. Equities declined around the world, while a measure of fear in fixed-income markets jumped the most since November.

About the Author

Mark Gilbert

Mark Gilbert

Mark Gilbert is a Bloomberg View columnist and a member of the Bloomberg View editorial board. He has worked at Bloomberg News since 1991, most recently as London bureau chief. He is the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable." You can read more of his articles here and join him on Twitter here.

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