ECB: Sovereign Debt Crisis Coming Up; U.S. Included

WSJ reports on what is becoming a very obvious concern:

The European Central Bank widened its focus beyond Greece, warning that major economies such as the U.S. and Japan which recently emerged from a severe financial crisis already face a new one in government debt markets.

"We may already have entered into the next phase of the crisis: a sovereign-debt crisis following on the financial and economic crisis," ECB executive board member Jürgen Stark, from Germany, said Thursday.

It's really hard to see how this doesn't end without huge monetization of state and local debt, here in the United States.