The Debt Contagion is spreading in Europe! As Greece and Portugal had their bonds downgraded yesterday, Greece to BB+ junk status, Spain joined the club today as Standard & Poors got dropped a notch to AA status. Portugal lost two steps, down to an A- rating. S&P released a statement that their outlook on Spain is negative. Meanwhile, the IMF and Germany promise to move quicker and bolder in efforts to aid Greece. But is it too little, too late?

Some 20 Billion Euros were pledged to Greece last month after weeks of negotiating. Foremost was objections by German Chancellor, Andrea Merkel, who faces tough elections soon. Recent polls show Germans oppose the Greek bailout by a two-to-one margin, 65% to 33%.

But the depth of Greece’s financial woes is far deeper. They estimate that they will need around 60 Billion Euros this year and as much as 120 Billion over the next three years to help offset their 300 Billion debt burden. The Greek government has begun instituting draconian reductions in spending, which have resulted in several nationwide strikes and protests. Many now think the ultimate solution is for Greece to be temporarily expelled from the Euro Zone.

The downgrading of bonds the past two days have been expected. Spain’s difficulties have been growing steadily as massive debts and unemployment stall their economy. The general consensus, however, was that no rating downgrades would occur until this summer. Today’s move may be a sign that the Debt Contagion is getting worse and spreading faster than estimated.

Andrea Merkel announced today that Germany will live up to it’s promise to help Greece. The International Monetary Fund (IMF) likewise said today that they are prepared to add to their previous commitments as negotiated last month. Other countries, such as Ireland, Italy, Poland, and even the United Kingdom, are also facing bond ratings being downgraded, too. Today, Greece’s two-year note jumped to a whopping 38%, a sign that only the brave and foolish are willing to lend them any money. Time to call Goldman Sachs and buy a short on Greece!