Someone Else's Default

No wonder Moody's downgraded us - via Calculated Risk:



It seems that in the 'Really Bad Scenario':

...45% of the countries with large outstanding sovereign debts are in default within a 2-3 year period. ...The total debt in default reaches $15.3 trillion, and almost half of all outstanding sovereign debt is in default. The losses are $10.5 trillion at the low end recovery rate of 31%.

Though as the author re-assures us, this isn't the worst case scenario...