Here, for your viewing pleasure, is a breakdown of the some of the terms used in the discussion about the European debt crisis*. I've used Greece and Germany as examples (represented by their flags), but this really applies to any country. For example, Iceland's government defaulted on its debt to the UK.
The key thing to understand that when people say "Greece is being bailed out", what they are really saying is "Greece is being given European taxpayer money so they can pay foreign banks back".
And as for all the self congratulating yesterday that the crisis had been averted, mark my words: Greece will default.
Oh, and if you are wondering why I'm drawing up flowcharts about economics when I'm supposed to be an engineer, it is because I have layers, like a parfait**.
* This is available in wallet size, so you can carry it around and look like a dork!
** Euphemism for "I took an economics course once and now I think I understand world economies, plus its lunchtime and I'm bored."
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