Egan-Jones on Sovereign Default Risk & Losses (US & Europe)

Sean Egan of the independent ratings agency Egan-Jones discusses sovereign default risk (10 days old but still good material). Losses expected: 90% expected in Greece; 70% in Ireland, Portugal. He recommends backstopping ECB ($100B+ of capital); have ECB backstop deposits of all periphery countries. Egan-Jones also cut the US's debt rating recently. Says increase in debt ceiling doesn't address the real issue: too high debt-GDP ratio.