Why An Italian Debt Crisis Should Scare The Crap Out Of Everyone

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If the Greek debt crisis is a tough pickle to solve, it would be nothing compared to a crisis in Italy, which is falling hard after a warning on its debt from S&P.

This chart (via FT) confirms that bank exposure to Italy absolutely dwarfs exposure to Greece and even Spain.

http://www.businessinsider.com/chart-of-the-day-bank-holdings-of-piigs-sovereign-debt-2011-5

[scandal 951]

So if a sovereign-debt default by Italy is the 400 lb gorilla of scary governmental defaults, what does that make the default by the US Treasury when we fail to increase the debt ceiling in time? What's the equivalent of, oh, 1,000,000 400 lb gorillas?

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So if a sovereign-debt default by Italy is the 400 lb gorilla of scary governmental defaults, what does that make the default by the US Treasury when we fail to increase the debt ceiling in time? What's the equivalent of, oh, 1,000,000 400 lb gorillas?

An opportunity to cut spending! We don't actually need a functioning government or country.

[scandal 951]

An opportunity to cut spending! We don't actually need a functioning government or country.

According to Harold Camping, we don't. The world is still going to end in October anyway.

Maybe that's what the GOP believes to when they say doomsday scenarios about the debt ceiling are overblown, they're with Camping in believing in a much bigger doomsday.

[Ban Hammer 13,403]

So if a sovereign-debt default by Italy is the 400 lb gorilla of scary governmental defaults, what does that make the default by the US Treasury when we fail to increase the debt ceiling in time? What's the equivalent of, oh, 1,000,000 400 lb gorillas?

400,000,000 pounds worth of gorillas?

[dalegg 143]

400,000,000 pounds worth of gorillas?

That's good eatin'