I don't know if most credit is by proxy German, but I think that the Greek/Spanish/Italians aren't the only ones to blame. Sure, they lended irresponsably, but the ones who facillitated this should have seen this crises coming from miles away.

What I mean, is that it was Germany's economic strength that allowed banks to rationalize cheap loans to financially troubled Eurozone countries. Germany's Euro association was in essence a moral hazard that lead to excessive loans to Greece. But, I think it goes even further than that; banks are the ones playing this game, and are by-and-large agnostic to the outcomes. That's why seeing the coming crisis didn't change their behavior. The smart banks like Goldman Sachs can play both sides.

As for protecting the system, I'd say that what happened in Greece this weekend shows how protecting the system can lead to radicalization. They are suffering, and not necessarily for their own future's sake. If Greece had its own currency, they could devalue it and suffer so much less. What do they gain by saving the Euro? And is it worth the costs? Who are they suffering for?: Germany? Themselves? The banks? These questions aren't easy to answer.