Should Greece abandon the euro?
When the bank cannot absorb the loss of having paid for a property or venture in the form of a loan, and the borrower defaults (cannot pay, declares bankruptcy, abandons, etc.), and there is an overall devaluing of the product the bank paid for a loan, it has lost that money, and the bank itself is in danger of declaring itself insolvent - unable to function due to a lack of liquidity (cash on hand). Germany may benefit from a strong euro because the demand for German products world wide remains strong and they are able to import products cheaply. Countries like Ireland have made efforts in reducing their costs, but still face great difficulties in the banking system.