There is only one solution to this problem as far as I can see: the Eurozone as a whole will have to accept responsibility for the currency that it created and replace the failed Greek debt with new Europe wide debt obligations that would be issued in exchange for the discredited Greek debt at an obvious, and considerable, discount on the latter.
Remember what we did with those American mortgages?
Yup, we bundled together Mrs. Smith\’s with Mr Jones\’ and those of a few other people.
The resulting pool was ever so much safer for of course they weren\’t all going to go tits up at the same time, were they?
So now we\’re to transform Greek (and obviously, Portuguese, Irish and Spanish and, gulp, maybe Italian) debt into a CDO.
For they can\’t all go tits up at the same time now, can they?