The Euro crisis has brought back memories of the financial crisis of 2007-08. The stock markets developed a risk aversion expecting an implosion with the Greek crisis turning into a 'Lehman II' like situation.
The current problem in the world economy is a heavy debt both on private and government balance sheets.
Individuals took on mortgages to fund their second homes, high standard of living and private entities took on off balance sheet derivative instruments like collateralised debt obligations (CDOs), based on future cash flows that ballooned up their debt levels to more than 10 times their equity.
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