One consequence of the ratings downgrade is that it will be a significant deterrent in breaking the death spiral that the sovereign-banking loop creates, this conundrum was discussed in detail in Eurozone Crisis Solutions.

FORBES: Capital Punishment and Capitulation: Why Spain will find it difficult to move forward

There is good reason to think that treating Brazil's crisis as merely a temporary setback on the road to recovery is to ignore a potentially more ominous Big Picture - that the event represents another loop in a deflationary spiral that could dampen the world's economic prospects for years to come.

CNN: BRAZIL'S BOMB