The European bankers are afraid of a domino effect, because most of their banks are in a far than less than ideal financial position.
Too much money has been lent out for too long to people who cannot afford to pay it back.
Something like the toxic housing loans taken out in the U.S., before the financial crisis made itself felt there.
In Greece, the Government propped up a way too expensive social security system for far too long, and kept asking for more and more bail out loans from the rest of the Eurozone.
Spain Italy Portugal and Ireland did the same thing, because it was politically expedient to do that, to stay in power.
All caused by imprudent banking practices.
Edited by sel_69l
06/15/2012 11:22 am