Largest holder of US debt dumps it all. Not so bad, right ? I mean someone else had to buy it, right ?
Yes, until they get skittish and try to sell it. Then that buyer wants a discount.
Still not so bad.
Well, Lather, Rinse, Repeat; until you get to the last guy and he won't buy it, nor will anyone buy any of your new debt that you need to issue in the next two weeks.
What happened in Wisconsin may just be the beginning of the beginning. Can you say Greece ?