actually by and large agree with most of that quids. Some minor quibbles, UK interest rates have been rock botom for ages and (thank god) haven't gone up today. Sovereign debt can be sustainably higher than most EU countries currently have them at. Some of the smaller less diversified economies were more fragile than they appeared during the boom and debt reduction realities are having to be faced up to, but if you take the bailouts out of the equation then Brown's spending boon turns out to be something of a myth.* I think worse than sovereign debt has been, to paraphrase you, 'individuals in countries' who's spending has been fuelled by cheap debt. This is certainly the case in Spain where sovereign debt remains markedly lower than the UK's. This has been facilitaed by membership of the Eurozone in places like Greece and Ireland, but I think has also been down to other factors such as deregulation, globalisation and is simultaneously symptom and contributory factor to all those lovely bubbles we've seen rise so high, only, like my dreams to fade and....oh hang on wrong thread. *although all those damn pfi contracts means he single handedly made much of the public sector pricier and worse but that's a whinge for another thread.