Doomsday may be creeping up again, but you would never guess so considering the seemingly endless appetite for global risk assets right now. Europe is heading into a perfect summer storm, but global investors remain in party spirits. It is unlikely to last too much longer.
The euro zone crisis was triggered in 2009 when Greece's debts, left by its previous government, reached a record 300 billion euros, leaving the southern European economy with debt levels more than four times higher as a proportion of gross domestic product than the official euro zone cap of 60 per cent of GDP. Since the original problems were uncovered, Greece has been bailed out twice, and lenders have also had to rescue Ireland and Portugal. In the latter half of 2012. Cyprus also required a bailout.