Cascade

So it seems our Galtian Overlord handed the power to destroy the world over to any large debtor.

PARIS — Greece risks being judged in default on its debt obligations if banks are forced to bear part of the pain, Standard & Poor’s said Monday, suggesting that current proposals for rescuing the euro zone’s weakest member may have to be reconsidered.

In particular, a plan proposed by the French government and banks “could require private sector debt restructuring in a form that we would view as an effective default,” S.&P. said in a statement.

The issue, presumably, is that calling something a default will trigger various insurance contracts written on that debt and then bring everyone down...