Who Owes What

The NYTimes has a lovely, concise graphical representation of the debt situation in Europe.  Note the relative size and importance of Greece to the other PIIGS. Given that French and German banks are owed the most, now you should understand why the ECB agreed to the $1 Trillion bailout: they aren’t saving Greece; they are saving French and German banks that made stupid, high-risk bets.

Does that sound familiar?

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