The penny has dropped.  We are in a period where the only way out is deleveraging otherwise known as debt reduction.  Yes it will be painful but its more painful watching bankers whining to governments to protect themselves.  We are in a state of flux where the only solution is debt reduction.  This can happen in only one of a couple of ways.  One is debt write offs and the other primary one is inflation.  However all countries cannot inflate at the same time.

EU banks could shrink to hit capital rules | ft.com

Another top banker said: “It’s fundamentally wrong to increase capital at the moment. Deleveraging needs to happen.”

However, the banks’ “shrinkage” strategy is likely to prove controversial with politicians and regulators if it led to bankers lending less money to customers, jeopardising the eurozone’s fragile recovery, analysts warned.