The Greece thing is being swept under the carpet. The problems had begun early on and by 2010 the credit outstanding was so large that it would have been very damaging for the banking system in Europe in case they would have written off. But, in my opinion, they should have written off at that time. Greece should have been kicked out of the European Union or some other political solution should have been found at that time.
Instead, lenders gave more and more money. Greece's economy is not big enough to support $300-billion worth of foreign debt. There is also a geo-political angle to the Greece crisis. The hardliners in the US are very much aware that if Greece leaves the EU, then the Russians will be knocking on the door of Greece or the Chinese will establish naval bases in Greece; remember, Greece is part of the NATO. The Greece issue is more a political thing than economic.
Economically, it's very clear that Greece will not be able to pay its debts.
