Click here for an interesting discussion of Greece's financial problems.
Reminds me of the lyrics in the "Fear the Boom and Bust" rap video in the post below. Hayek: "Then all that we're left with is debt."
Also reminds me of the book that Laura read in one of her classes last year: Devil Take the Hindmost: A History of Financial Speculation, by Edward Chancellor. I referred to this book in my talk at Yankee Farm Credit's annual meetings a year ago. That book was written in 2000, long before our current economic problems, but maybe that theme isn't worn out yet!
Individuals, financial institutions and countries should all beware of excessive leverage.