[Bankrupt] Citigroup’s chief economist Willem Buiter says

According to him, no sovereign is safe in the present situation, including the US and Japan. He explains why the funds effectively disbursable by the EFSF are much lower than the face value of 750bn and calls for an extension of the facility to “about € 2000bn” to cover likely losses from banks.

Am I surprised? His only job is to forestall the default of  Citigroup. Following the same logic, I declare the ECB should just send me a few million.

The Citigroup chairman, once claimed that Citigroup was too interconnected to fail.

Citigroup is bankrupt, that it the real story here.  I think Citigroup is best to stay out of the spotlight on the issues of default.
 Buttalk is finally getting to Haircuts in this Bloomberg article:

The European Union has so far failed to persuade investors that it can solve the debt crisis that has roiled financial markets for more than a year, required bailouts of Greece and Ireland, and shaken confidence in the euro. Now, Goldman Sachs Group Inc. and Barclays Plc’s wealth management division say a Brady-like program may be needed to reorganize the debt of cash- strapped euro-area members.
“It’s something they should pursue,” said Erik Nielsen, chief European economist at Goldman Sachs in London who worked on the Brady plan as a World Bank employee. “So long as we don’t figure out a way of restructuring the debt, maybe this is a way of doing it.”

A Brady like plan would reset the debt to real market values, a 30% reduction, then a stretch out coupled with reform of finances. The resulting debt is backed by Euro wide ECB bonds.