you still dont get it do you Frag.
In a common currency like the Euro the banks are bailed out by each national government at the insistence of the ECB with no debt haircuts.
Removing your currency from southern banks does not remove the liability of the southern bank to pay back any debt.
Unfortunately these liabilities are too great hence we have bailouts because people dont want to crystalise the losses.
The longer this goes on the more dominoes will fall and when dominoes fall unless you take a few out it doesnt stop.
Bookmarks