Debt

You may think my suggestion wouldn't work.

To put it simply, Germany holding astronomical sums of bond - government bonds or corporate ones - in Euro. If that double-crossed epsilon depreciates too much, many Deutsch banks would have to write off a substantial portion of their asset and face a huge loss.

But, the argument is flawed. If your debtor could not give you back the money, it doesn't mean that you have to lend them more - even if the new loan is for paying the interest of your old one.

And, to go one step forward, it is naive to believe German banks should see all the loss if Euro depreciate.

Do you know what is short selling, collateralized debt obligation, and repackaging?