CONTAGION - What CONTAGION?? -by Andrew Strom. The US Stockmarket was down over 200 points today. Why? Because of the "contagion" occurring in Europe. Most of you will have heard in the last two weeks of the Greek Debt crisis. Well - it is spreading. Even though there is claimed to be a "bailout" for Greece in the works, the markets are taking their own action, and seemingly mass 'contagion' into other nations is underway. The nations most at risk are Portugal - then Spain - then Ireland, Italy and maybe U.K. Nobody knows how bad it will get. But it is already pretty bad. For months we have stated that "another wave down" is coming in the economy. Could this be the cause? Clearly - yes. Or perhaps it is something else. Certainly, this one is big enough to do it. Today, S & P cut Greece's debt ratings to "junk" status and also downgraded its rating on Portugal's debt by two notches. This makes it much harder for them to borrow. Already this crisis grows worse every day. Some analysts even say it could break up the Eurozone. Certainly, "contagion" from country to country to country is already underway. As one equity strategist told MarketWatch today, "This is a Western European country that has the euro imploding before our eyes. If you don't think that has a ripple effect, you belong in the summer of '07 again." The Telegraph's International Business Editor wrote today: "The European Central Bank may soon have to invoke emergency powers to prevent the disintegration of Southern European bond markets, with ominous signs of investor flight from Spain and Italy." Today, yields on 10-year Greek bonds spiked up to a record 9.73pc. Yields on 10-year Portuguese bonds spiked 48 basis points to 5.67pc, replicating the pattern seen in the onset of the Greek crisis. Jacques Cailloux, chief Europe economist at the Royal bank of Scotland told the Telegraph: We have gone past the point of no return: there is a complete loss of confidence. The bond markets are in disintegration and it is getting worse every day." They may have to act as contagion spreads to larger countries such as Italy, and we started to see the first glimpse of that today, he said. The interest rate on a 9.5bn (£8,2bn) issue of Italian notes jumped to 0.814pc, up from 0.568pc in March. Italy has the worlds third biggest debt in absolute terms.' [- www.telegraph.co.uk ] Greece is one thing, but once the crisis reaches big countries like Spain and Italy - which it already seems to be starting to do - then it could easily become a global Tsunami. I have heard that David Wilkerson prophesied years ago about a coming "Debt default" by a nation causing a huge financial storm. It is still too early to tell if this is it. But certainly the "Great Recession" is not over yet. A time to pray and prepare, my friends. This topic is being discussed at the following website- http://www.JohntheBaptistTV.com/ We have also added our "14 Predictions" there for discussion too. God bless you all. Andrew Strom.