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Other Americans have sued Iran, Iraq, Syria and Cuba under the new law and, in a handful of cases, have already won enormous default judgments, often in the hundreds of millions of dollars.
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I believe that reports of possible enormous defaults are overstated.
At noon, about 100 protesters gathered at the foot of the 14-story building (Stumpf reportedly lives on the 12th floor), waving fans of fake money and holding enormous Notice of Default boards alerting Stumpf to his "foreclosure," and claiming he was "in default under a deed of trust held by the American people".
In addition, a default carries enormous stigma and penalties.
For Mexico, the risks of an American default are enormous.
By September 1998, with world markets already roiled by a Russian bond default, the enormous fund was teetering at the edge of failure, with many of the world's biggest banks and brokerage houses shackled to it by countless links of leverage.
But taxpayer-backed compensation to bankers in the event of default required enormous sacrifices by the Greek people and the handover of their public assets to creditors.
With all of that, reasonable reporters came to the conclusion that while states and cities face enormous budget problems, the default scenario Whitney gave just isn't adding up, and investors need to think twice before they panic.
Yet despite its enormous size, the credit-default swaps market has operated in the shadows.
Continuing on the current trajectory will most likely entail more bailouts, more guarantees and ultimately dramatic sovereign defaults or enormous fiscal transfers.
While a homeowner who lost a house to foreclosure would find it difficult to borrow for years, developers who defaulted on enormous loans have still been able to attract money.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com