Fears of US, Japan sovereign default

London: Fears of a sovereign default are “manifest” in Europe and will soon spread to Japan and the US, as governments struggle to control deficits, according to Citigroup Inc economists led by former Bank of England policy-maker Willem Buiter.

“Despite the recent drama, we believe we have only seen the opening and second act, with the rest of the plot still evolving,” London-based Buiter and colleagues wrote in a research note.

“There is absolutely no safe” sovereign.