There is a clear distance between the ones who would favour a restructuring of Greek debt - e.g. through a Brady Plan, as suggested by the Economist - and the European Central Bank, which keeps on underlining the need for further fiscal efforts in that country.
I think that a default would be a huge blow for the euro area, and a problem also for the US, as Obama said, but I do not know if we'll be able to avoid it at this stage. Apart from the economic consequence of the current situation, it seems clear that the states are considered just an instrument for reassuring markets and for their proper functioning. Their bonds are priced as private bonds, and what matters is just the sustainability of debt, and the risk it involves, not the origin of debt.
On the other hand, the State should also provide services and public goods to citizens, following principles such as transparency and accountability, whereas Greek accounts were clearly object of a fraud by the previous government. Any way should now be tried in order to avoid the default and to find the resources needed by Greece, but I think people protesting in Athens have good reasons. When someone wants you to pay for someone else's mistakes, I don't think you would like to reflect on the importance of staying calm and reassuring investors. So, I can really understand Greek people (and I hope there won't be any spillover to Italy and other "PIIGS countries").
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