Analysts are also concerned that a downgrade could mean Detroit would have to pay tens of millions of dollars to exit interest-rate bets it made with Wall Street banks in 2005 and 2006.

WSJ: Detroit's Decline Adds to Financial Strains

Using the currency's 2007 peaks as a guide, the pound has fallen more sharply against the dollar and euro (around 25-30%) than it did after the exit from the Exchange Rate Mechanism in 1992.

ECONOMIST: Buttonwood: Race to the bottom | The

Import prices will be pushed up by a weaker pound, whose 6% fall in the last three months was the biggest since sterling's ignominious exit from the European exchange-rate mechanism in 1992.

ECONOMIST: Economic woes

Now before people go getting too excited about this, I suspect Cyprus would continue honoring its TARGET2 obligations even after an exit by paying the required low interest rate on euro-denominated liabilities.

FORBES: Revised TARGET2 Paper & Implications for ECB of Cyprus Exit

This rapid rate of return--made possible by high valuations at time of exit--is hard to come by in more mature or heavily regulated industries.

FORBES: Magazine Article

It is very high, up there with the new French rate, if there are no allowances, no possibilities for simple avoidance or exit from the system.

FORBES: Why France's 75% Income Tax Rate Is Going To Be So Disastrous

The First Minister said he would, but the rate would have to be at the right level, citing the pounds early exit from the ERM in 1992.

BBC: Rhodri Morgan at First Minister's Questions this week