...is still going on because nobody can borrow their way out of debt. These countries that are so far in debt, should just default (go bankrupt) and let the loaners of all that money lose their investment and get it over with, just like Iceland did, which is now doing just fine.
Anytime you loan money to anyone, you take the gamble that you will get your money back with interest. It's a gamble anyway you look at it.
The United States is actually in worse shape than any other country because, in spit of our crushing debt, because we have the only reserve currency, we can just keep on borrowing which just makes our position that much worse.
Hopefully, with the Republicans taking charge next year, they can stop all this crazy spending, cut back on entitlements, crack down on unions, etc. and start trying to get our fiscal house in order. Heh! Everybody likes benefits but if you don't have the money, then just 'make do', go without until you can afford those benefits.
The government, from whom comes all those benefits, actually does not have the money to do anything on it's own because the money they use was acquired from taxes, or borrowing by selling bonds or printing money and eventually, all of the money for benefits 'FOR the public' must be paid for 'BY the public'.
Even when money is printed. it eventually causes inflation, which steals the buying power from the PEOPLE, which is the same as taxes.
So. irrational, nonsensical borrowing always leads to economic destruction eventually.