A different tale on Eurozone debts

The experience of the 2008-2012 world financial crisis shows that the boundary between private and public debt is increasingly uncertain. Only the Greek crisis was mainly caused by a public debt out of control and unfortunately concealed by the Athens government. In Ireland, Great Britain, the US and, more recently, Spain, the household and corporate debt crisis quickly developed into a banking crisis and, through the latter and combined with the economic recession effects, into a crisis of state finances and public debt. According to some studies, the aggregate debt (households, firms and government) of each country should be quickly cut below a80% of the GDP. The problem is that only the countries with substantial and widespread household wealth, such as Germany, Italy and France, could endure such a debt reduction.