German voters are not keen to pay for Greece's past excesses. So they must be convinced immediately that not doing so could be much, much worse for them.
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7615882/IMF-and-Bundesbank-fear-contagion-from-Greece-as-bond-spreads-soar-to-fresh-records.html
These are approximately the same circumstances that triggered the fall into Depression in the early 30's, after the 1929 stock market crash gave everyone the jitters. The good news is we have a different monetary system and it is possible our leaders will find a way to avoid the same circumstances (via monetary inflation, which was almost impossible in the 30's due to the Gold Standard), but the danger is that they get it "a bit too right" and inflation rages out of control.
Let's be careful out there.
The Greek government is having to pay 8.3% interest on its 10 year bond issues currently. Do you have a mortgage? Do you think you are a better credit risk than the Greek government? Can you afford to pay over 8% interest?
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