Yesterday, there was a news coverage on the 2 year aftermath from Lehman Brothers collapse. The New York Time reporter Andrew Ross Sorkin predicted in the interview the next wave of collapse will be governments, like Greece and possibly states like California.

I was a little bit surprised to hear such a strong opinion. It is clear the federal reserves do have now better tools to avoid private institution collapse which could have severe impact on the economy. On a bigger scale, like states it seems not all that clear what regulation mechanism are available. But reading repeatedly the warning signs from several known analysts about the debt issue and upcoming correction I am wondering if such collapse scenarios will take place.