Who would you as an individual lend your money too?
Family? Yes Close friends? Maybe? Businesses with good ideas? Maybe?
What if your family had borrowed before and not paid it back? What if you then realised that was because you gave them to much compared to what they could afford to give you back. That is exactly what the EU did with Greece. Greece , a country bankrupted 3 times in the last 150 years. In the nicest possible way they should NEVER have been allowed to join the EURO. Spain, Italy and Ireland also have significant issues with regard to actually meeting the initial entry requirements to join the EURO yet, backed by Germany and France they were all allowed to join. As was Portugal. Folks this was akin to a Wonga loan. The only way that ever gets paid back by Greece is if Greece is repossessed and becomes Germany. The reasons behind the continues lending was that it was very good for the German economy to take that line. It was also ok for the French economy to take that line. Dont ask me the whys and wherefores. Google it. There is enough info out there. So what do you do when it is clear that they have no money to repay? You lend them more. Great idea.