Megan McCardle on how the end will come

Ms. McCardle points out that when the markets decide we are no longer the safest bet around the rush for the exits will trample everyone in its path.  This is the most likely scenario, I'm afraid.

If at any point we are not seen as the safest game in town, we will take a gigantic–the better word might be “catastrophic”–hit on our bond interest. If there’s somewhere safer to park our money, suddenly we lose the premium we currently enjoy for having bonds considered the “risk free” rate. So while our super-sterling credit rating may delay the onset of a fiscal crisis, if we ever let it get to that point, the onset may be even more sudden and disastrous than these things usually are. All the more reason to start getting our fiscal house in order now.