The article explores how problems in the banking sector can affect a country's ability to pay its debts, and vice versa. By looking at data from European countries and banks from 2006 to 2012, the researchers found that the relationship between bank and government debt became stronger after the financial crisis. They also discovered that global factors influenced both bank and government debt risks, with banks initially being more affected but later shifting to governments during the Eurozone crisis. This suggests that investors saw government debt as a major risk for banks and used government debt contracts to protect themselves. Bailouts for banks could actually make a country's financial situation worse, leading to problems for both banks and governments.