Now we have to worry about French banks?

The debt contagion is spreading from the Eurozone's periphery and going straight for the heart. New worries emerged over the weekend about the stability of several large French banks, as well as Germany's willingness to keep bailing out Greece. The New York Times: More than anything else, political and business leaders want to avoid the phenomenon of contagion, in which fears in one country spread to others, causing severe stress throughout the financial system, as happened in the fall of 2008. To be sure, Europe could still draw away from the precipice. That is especially true if policy makers come up with a plan to keep Greece afloat while also preventing anxiety from infecting other countries like Spain and Italy, whose huge debts and weak economies have fed worries that their borrowing has become unsustainable. On Sunday, French government officials braced for possible ratings downgrades by Moody's Investors Service of France's three largest banks, BNP Paribas, Société...(Read Full Post)