Default - It's happened before!

The looming government default has all of us nervous.  What is going to happen as the many House Republicans, oppose raising the federal government’s borrowing ceiling?

We might just take a lesson from the first sovereign debt crisis.  I found a very interesting article by Christophe Chamley that examines Spain’s default in 1575.   He shares the events that occured more than 400 years ago and suggests is that it’s easy to ignite a dangerous chain reaction in financial and credit markets and inflict lasting damage on the economy.   Read more of this interesting comparison.