Assigning Blame for Greece's Unbearable Debt

European leaders are belatedly coming to a crucial understanding: Greece's debt burden is too much to bear. As they consider whether to provide relief, they should keep in mind how the country ended up owing their governments so much in the first place.

Let’s go back to 2010, when Greece's government -- having blown its own budget projections -- found itself at the epicenter of the European financial crisis. Private investors, including big, thinly capitalized German and French banks, held pretty much all of Greece's sovereign debt. This presented Europe's leaders with a choice: Lend Greece the money needed to satisfy creditors, or let Greece default -- in which case Germany and France might face the politically fraught prospect of bailing out their banks directly.