Bundesbank President Weber has been the most candid to date about what the ECB could do in case Greece is downgraded again, especially by Moody's.

Recall the problem: Prior to the crisis, the ECB would take as collateral only paper rated A- or better. During the crisis they have extended it to BBB-. It is due to revert back at the end of the year. Fitch and S&P rates Greece below A-, leaving only Moody's above the normal threshold.

Greece desperately needs people to buy its bonds. So what does it do? It excludes potential buyers, specifically hedge funds:

Greece ordered its bankers to exclude hedge funds from a bond offering this week in an effort to punish the speculators it blames for destabilising its debt markets.

Portugal is the likely candidate and, although the IMF's Strauss-Kahn says that the Greek crisis will not spread to other eurozone countries, at least Portuguese officials are not as convinced.

Today Portugal announced more plans for fiscal consolidation. While Greece is committed to reducing its budget deficit from 12.7% last year to 8.7% this year, Portugal intends to cut its deficit to 8.3% from 9.3% last year. It projects a 6.6% deficit next year, 4.7% in 2012 and 2.8% in 2013.