Stocks Slammed by Eurozone Woes

"At the short-dated two-year horizon the yield curve has shifted by 404 basis points to 6.56%," added Andrew Wilkinson, chief economic strategist at Miller Tabak. "The cost of borrowing has therefore more than doubled, which means interest payable to investors at maturity has also doubled. For a country facing employment and spending cuts to contain its budget deficit, this rising interest burden is unwelcome."

"Meanwhile Spain's European partners are suffering from the deepest-ever recession with little prospect of an end in sight."

Over the weekend, Murcia became the second Spanish region to ask for government financial aid, following Valencia's request late last week. Up to six regions may be next in line to ask for assistance, according to media reports.

The euro fell to a more than two-year low against the dollar amid worries about the deepening crisis across the eurozone.

Compounding the eurozone anxiety Monday was a report by German magazine Der Spiegel over the weekend that the International Monetary Fund may decide to not help with any more financing for Greece -- highlighting its growing impatience with the burdens of trying to help hold up the country -- as international inspectors pay a visit to Athens beginning on Tuesday. They are expected to demand more spending cuts from Athens in exchange for more aid.

"We think the key problem in the eurozone is with Europe all together," Burke continued. "You have the euro itself, the currency is printed by the ECB. The ECB is not really a central bank so it's really a little bit fragmented how it's run; so if you looked at what happened in Japan. You know Japan did not respond to their own recession the right way. They starved their economy of money when they needed to print money. And their economy never really recovered."

"So you have the same situation going on there [in the eurozone]," he said. "You have a problem where governments like Spain are just clearly running out of money and they can't pay their interest, so that can extend to Italy, that can eventually extend to France, unless they fully figure out that they've got to do something different than what they did in Japan."

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