It's been a long and challenging week for investors after fear gripped the markets, and global indices hit their lowest levels in a year.  The EUR/USD is now trading around 1.34, which demonstrates the low level of confidence foreign exchange traders have for the Euro-Zone.  Despite promises from large economies like France and Germany to bailout Greece, European economies are experiencing limited output and growth.  Other data shows that Asian markets are also experiencing an economic slowdown.

Economists are warning that the situation now is worse than the collapse of Lehman Brothers in the United States .  Global banks in Greece, Italy, France, and the United States have all been downgraded by Standard & Poors.  When there is concern in an economy about the ability for banks to repay creditors, investors quickly find other institutions to put their money.  This creates limited liquidity for the average citizen looking to start a business, buy property, or purchase a car.  The implications of a default would be disastrous for the whole world, as there aren't many more things central banks can do to stimulate their stagnating economies.