The buzz words "burden sharing", "rescheduling" and "soft default" are popping up around Europe. A final "flight to mediocrity" in the US could wash through during the process. We have long advocated that the balance sheet swap was only a good idea if losses were recognized when the time came. The US is barely even trying. The world will not end. Europe would start the real growth process faster if they let it go. Double digit rates backed by government facilities is suicide.
They- and many others - cannot pay. That's the end of the story, finally it also looks like the end of the affair.