Desmond Lachman : European policymakers finally facing threat of Greek default . He says they know they must recapitalize Europe 's banks to prevent ` ` contagion 's '' spread . He says action difficult politically , bailout unpopular , so they have not taken any concrete action yet . Obama : And responding to increased banking sector strains that both the IMF and the European Central Bank fear could tip Europe back into recession , European policymakers are proposing a coordinated European effort to recapitalize the European banking system . Policymakers must act to create ` ` firewall '' to the Lehman - Moody crisis .
Desmond Lachman : European policymakers finally facing threat of Greek default . He says they know they must recapitalize Europe 's banks to prevent ` ` contagion 's '' spread . He says action difficult politically , bailout unpopular , so they have not taken any concrete action yet . Obama : Policymakers must act to create ` ` firewall '' to the Lehman - Moody crisis .