It's gotten bigger than Greece... if the recovery was intact it would just be the weak countries like Greece that couldn't pay their debts, if the economy dips then the big countries like Spain and Italy can't either. It turns into a death spiral, the more people panic over the crisis, the worse the economy gets, the more countries are at risk of default.
Meanwhile, German economic policy essentially consists of:
1) Tight fiscal policy to crush any signs of a recovery.
2) Tight monetary policy to crush any signs of recovery.
3) Tie yourself to some profligate countries so that you have a cheap exchange rate
and can sell s***loads of exports.
4) When the countries you provided vendor finance to start having trouble paying
you back insist that they follow 1) and 2).
5) Wonder why everyone hates you.
..."It's a pulley system - you throw everyone over the cliff and let the rope
take you higher. But eventually you reach the pulley."
reminds me of Air France 447, the people running the show initially reacted by pushing the stick in the wrong direction, they're still way behind the curve, by the time they react with sufficient force, might be too late, crash of markets, governments defaulting, countries abandoning the Euro.