Defaulting on Debt

Is this the next scary phase of the credit crisis?
There are predictions that several governments in Europe and Latin America will default on their bonds.
Lesley Curwen speaks to Don Smith, a strategist at the London brokerage firm ICAP, who explains how the government bond markets work.
Economist David Roche, the president of Independent Strategy, looks at the possible consequences if government bonds, which have traditionally been seen as safe, risk-free investments were to change permanently.
Plus, can the disruption caused by the volcanic ash clouds actually make office workers more productive? Our regular commentator Lucy Kellaway explains.