Question is, in GFC 1 the Government bailed out the banks. This time its governments in trouble who are in grave danger of defaulting on debt.
Who owns that debt? The European banks. So what happens when those banks take it where it hurts if a Govt such as Greece or Italy hits the wall?
If a govt defaults then the banks will be on their knees and they will do whatever it takes to save themselves so watch out below because the trillions in credit default swaps will force them to react swiftly. Have a read at the following for some insight on what sort of mayhem will arise then
