Analyst Notes:

The security of our nation has been inexorably linked to that of the world's. While it is common that we blame American businessmen for all financial ills in the world, the problem is much larger than that. The greed and mismanagement of all nations is coming to a head and we will pay a heavy price. Most conflicts in human history are tied to money and resources and when those become scarce bad things happen.... I would venture to say that most bankers are getting their hedges in place rather than really looking to solve this issue....

“There is a cliff we are racing toward — it’s huge,” said Richard Barwell, an economist at Royal Bank of Scotland and formerly a senior economist at the Bank of England, Britain’s central bank. “No one seems to be talking about it that much.” But, he added, “it’s of first-order importance for lending and output.”

Banks worldwide owe nearly $5 trillion to bondholders and other creditors that will come due through 2012, according to estimates by the Bank for International Settlements. About $2.6 trillion of the liabilities are in Europe.