When the G8 major economies convened at Camp David last weekend, the continuing crisis of the euro, common currency of 17 European Union (EU) members, dominated the economic discussions. The agonies of Greece, badly divided in recent parliamentary elections, and forced to vote again on 17 June, were at the forefront.

German taxpayers' strong opposition to a Greek bailout could be a major challenge for Greece as it seeks to resolve its economic crisis.

Government-backed lenders could be a bigger problem than the savings and loan crisis.

Government-backed lenders could be a bigger problem than the savings and loan crisis.

The banking industry suffered credit crises in the 1970s, 1980s, 1990s, and 2000s. An unavoidable conclusion is that its loan loss reserves were in all cases too small. 

On the subprime mortgage bust.

Enjoying a fascinating visit to Berlin, newly designated capital of the (you must bail out the) Eurozone. One cannot help but feel for Chancellor Merkel, who is meant to be fixing the Eurodisaster on her own by creating a Eurofinance system relying on newly powerful Eurocrats who will remain without an actual democratic mandate from, you know, Europeans. But I get ahead of myself.

Considering the size of the exposure that might arise from IMF lending to the European periphery, the administration owes it to the U.S. public to be up front about the potential cost to the U.S. taxpayer of such lending.