Western European banks have lent trillions to Eastern Europe. Defaults would be so large that Europe could see a depression-like economy almost overnight. I found several articles about this on the internet and have heard a few talk show hosts speak about it. One of the more shocking evaluations of the situation appears below.
Mike Whitney writes:
Eastern Europe is about to blow. If it does, it could take much of the EU with it. It's an emergency situation but there are no easy solutions. The IMF doesn't have the resources for a bailout of this size and the recession is spreading faster than relief efforts can be organized. Finance ministers and central bankers are running in circles trying to put out one fire after another. Its only a matter of time before they are overtaken by events. If one country is allowed to default, the dominoes could begin to tumble through the whole region. This could trigger dramatic changes in the political landscape. The rise of fascism is no longer out of the question.
Link to full article
http://www.marketoracle.co.uk/Article8925.html
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