Sovereign debt threatens to burst the stitches of the world's banking system, and global financial markets are responding with alarming volatility. Even more ominous is the news that the world's biggest banks, worried of mountains of bad debt, are reportedly again growing wary of lending to each other.
And this time many governments, waist-deep in debt themselves, would be more hard-pressed to provide bailouts and stimulus spending. So a new crisis could be more severe than the one triggered by the collapse of Lehman Brothers three years ago next week.
European and US political leaders have been staring at this growing credit crisis for months like deer mesmerised by headlights, grudgingly making only minimal moves toward solving the problem.
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