It seems that the markets are finally losing patience with the leaders of the Eurozone to face up to their financial problems. The downgrading of Spain's debt from A to BBB is basically taking it only two notches above junk status. The economy of Spain is stronger than that of Greece but its banks are sitting on massive property losses estimated at Eu100bn. The assessment by Fitch is stark, they are talking of property value falls of 50%...!
This is mainly designed to push the leaders into coming up with a solution. The markets are awaiting the results of the Greece election which will basically be a vote on whether they want austerity imposed by others or go down the default path and impose it on themselves.
It was always so that if you owed the bank £1000 it was your problem but if you owed them £100,000 it was their problem!
Uncertainty is killing any growth or investment.