0:35 Bond vigilantes are similar to those who were shorting invest banks a few years ago. They will keep climbing the quality of countries, similar to how they did with banks.
1:35 There is no example in history of any country growing out of this sort of debt position, except for Britain in the early 1800s, which had empire and industrial revolution on its side.
2:10 What is worrying is that there is no inflation, which is the easy way out of this sort of financial situation. Default now seems the only escape, and the U.S. may choose that path with unfunded liabilities like Social Security.
3:00 Nothing would scare the market more than if the government followed Paul Krugman's call for more stimulus.
Read more: http://www.businessinsider.com/niall-ferguson-paul-krugman-2010-7#ixzz0svCJmGg4