Sovereign debts are minimal compared to the overhang of dodgy debts from 2008 still on major banks books.
Soveiegn debt is the tipping point and a distraction to the real problem:
WE ARE STILL IN A GFC.
"RBS, for example, still has €79.6 billion of assets overhanging, when its sovereign debt positions in struggling Eurozone countries are 'only' €10.4 billion."
"HSBC still has €54.3 billion in credit market pre-2008 assets on its books, and 'only' £14.6 billion in eurozone dodgy sovereign debt."
"Deutsche Bank has €51.9 billion in 2008 dodgy debt and just €12.8 billion in current sovereign euro-debt."
