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S&P: Euro-Zone Woe Still Threatens Potential Global 'Shock'
The euro zone has avoided falling into a "financial crisis" thanks to plentiful liquidity from the European Central Bank, but a wrong turn by policymakers could still prompt another global "shock," Standard & Poor's Ratings Services said. The ECB's long-term refinancing operations--massive infusions of cheap three-year loans to cash-starved European banks--"likely helped to avoid a financial crisis," S&P said in a report released Tuesday. "However, the fundamental issues that weigh on euro-zone economic performance and fuel fiscal imbalances remain largely unresolved," it said. "If investors perceive flagging ... (full story)