Everyone seems to be worried about Greece and Spain. I'm more worried that the UK may turn out to be like Japan where the austerity measures caused a slump that lasted a decade. Not entirely sure UK's financial situation is in dire straits. At the end of the second world, UK's debt levels were far higher than today and yet it was manageable. However, I do recognise that the credit raters, the same people who failed to do their jobs properly on sub-prime mortgages, may, at some point, perversely downgrade UK's outlook. Subsequently causing an increased budget deficit.