Why is the Sovereign Debt of Some EU Nations (part of the planet Earth) particularly newsworthy?

[Boojatta]

Is it newsworthy because of domino/contagion worries?

Is it newsworthy because the value of the euro currency may be affected, and many people around the world have some savings or debt in the form of specified numbers of euros?

What are the main reasons that it is newsworthy? Many governments have debt problems, especially in the third world.

[xchrom]

1. Contagion. If it spreads - I.e. To the large financial houses

We are told we are all in serious trouble.

[Vincardog]

2. If the bonds of one country are allowed to default. The companies retirement funds and other

countries that hold that debt have to write them off.
They have to Mark to Market the assets on their books.
The problem is that the assets they have on their books are HUGELY over inflated.
If they (those assets) were marked at their
true value the holding company would be exposed as bankrupt.
Since the CEOs CFOs and "managers" of those institutions have been
delivering gigantic bonuses for their excellent work over the last few decades; they are not happy to see the grave train end.
They would rather have their pet regulators in the IMF and World bank continue to cover their criminal actions, socialize the costs and continue to privatize their criminal gains.

[dixiegrrrrl]

3. Because as debt increases, it costs more for interest and repayment

until there is not enough money coming in to pay the debtors.
The interest and principal payment of the debts reaches a point where the people ( other countries) who loaned the money start worrying about getting paid back.
More and more of a country's income has to go to debt servicing, so other expenses cannot be funded, over time.

It is just as if YOU were to lend someone 10,000 dollars. You want to know their credit worthiness, right?
If they owe everybody in town, then their income shrinks, you would be worried about loaning more money to them.
You would be worried about them paying the interest on the loan, not to mention the principle.
Very simplified example, but essentially the same thing.

[Boojatta]

4. I don't see in your reply any mention of Europe

My question wasn't about sovereign debt in general, but was specifically about Europe. Also, I'm wondering how it is judged that various events associated with European sovereign debt are newsworthy.