According to Crooked Timber, it’s Switzerland that is the next western nation to be hit by the credit crisis:

Not only major institutions but whole national economies are up for grabs now. The national bankruptcy of Iceland seems likely to followed by something similar for Switzerland. As Citi itself points out, UBS and Credit Suisse are bigger, relative to the Swiss economy, than Kaupthing was for Iceland. Felix Salmon (also predicting doom for Citi, has been all over this).

Go read the whole article, whose main thesis is that the financial markets are heading toward either very aggressive regulation, or government ownership, or both.

But still, what hit me in the gut was the Swiss possibly being broke….That’s amazing.

I gotta go short Swiss chocolate futures.