European Debt Crisis Averted

The European debt crisis has been averted, and nervous markets have picked up and recovered.

This story was not of tremendous interest on the "west side of the pond" but most European citizens and many finance ministers understood the chain reaction that could have occurred if Greece and some other countries began defaulting on their debts.

A default by Greece would force some European banks to have potentially have fully charged off the full value, or close to the full value of the debt, which could have, or would have caused tremendous losses and a major burden for many banks. A failure by any of such banks that have significant debt holdings in Greece can put the banks stability at risk. Any large bank failure will have devastating effects on the Euro markets for years.

Crisis averted for now.