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Europe Faces ‘Lehman Moment’ as Greece Unravels: Euro Credit

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 suggesting Greece has an 81 percent chance of not paying its debts. Equities declined around the world, while a measure of fear in fixed-income markets jumped the most since November.