Quote Originally Posted by Crazed Rabbit View Post
I said before that if people had stopped lending to Greece earlier, or demanded higher rates for the debt, the whole Greek problem would have been smaller because Greece would have faced market pressures for their foolish behavior.
Greece did have a higher rate for its bonds hence the people bought them as they got a better return on a greek bond than a german one. The market instead flooded greece with credit on the assumption it would never default due to euro membership.