Apparently investors were fond of thinking that Greek debt was as safe as any in EU because it was backed by the Germans. This seems not unlike the belief that

Apparently investors were fond of thinking that Greek debt was as safe as any in EU because it was backed by the Germans. This seems not unlike the belief that Fannie Mae/Freddie Mac were effectively backed by the US Treasury. In the the US scenario these investor beliefs have been upheld by bailouts. But in the Greek situation, this bet was just now shown to be wrong. The open question is just how big of a house of cards has been built upon this assumption. Tomorrow is going to be a busy day for a lot of people.