One of the arguments against bailing out the banks, or of creating an insurance fund or levy to do so if needed in the future, is that of moral hazard. By promising to do so if needed in the future we make the necessity of doing so greater for it\’s a heads I win tails you lose argument for the banks themselves.
The strongest proponents of this view are (apart from the Austrians nobly waving the flag for proper free markets over there in the corner) those on the left.
One of the arguments against bailing out Greece is exactly the same one. Having spent several decades splurging the money around like a drunken sailor ashore at Piraeus, if we bail them out then we make future bailouts more likely. For we\’ve removed one of the constraints against governments being so damn stupid in the future.
Absolutely none of those on the left who make this argument about the banks also make this argument about Greece.