How did we get from a US subprime to an international soverign fiscal crisis?

This talk by Bill White, the chief economist at the Bank for International Settlements (the central bank for central bankers), is really acute--and scary. He starts to speak at the 16 minute mark, and his part lasts for about 15 - 20 minutes. He speaks briefly again at the 1 hr 20 min mark about moral hazard in the Q&A. Note that under White, the BIS gave wonderful warnings of the bubble while it was going on, and he's being very modest by not bragging about that.

[If the video link doesn't work, try pasting this into your browser:  http://www.mediatheque.lindau-nobel.org/#/Video?id=641 ]

Best thing I have heard on the crisis since Doug Holtz-Eakin's minority report.

HT: Merle Hazard