There's another much simpler option: Greece can go bankrupt, default on it's loans, and start over without the burden of unrealistic debt keeping them in poverty. It can remain in the Euro and everyone can move forward more - perhaps with more prudent lending standards.
Yes, some investors will lose that money. They were happy cashing their cheques when things were going well. Investing is a business with a risk of loss.
Forgive me for being blunt, but I get the impression that you knew what comment you'd make before you read the article.
The article suggests the problem is systemic. Even if Greece goes bankrupt but stays in the Euro, the core issues have not been solved and the situation will arise again. In a race between efficiency and diversity, the Euro is systematically predisposed towards efficiency (which reduces the scope for diversity), and the economic controls that have historically protected diversity have been removed, therefore either diversity is lost (member nations lose control of their fiscal policy) or the Euro is abandoned.
That is what the article suggests. What is your response to that?
I think it's a mistake to assume that fiscal policy and monetary policy need to be linked.
The United States (although the federal government has expanded to a level I hope does not happen in Europe) provides an example. There are many state governments which have a dire financial situation. No one suggests the abandonment of the US dollar over it - it's understood that it's possible to have one group managing fiscal policy with a different group managing monetary policy.
I think the same applies to Europe.
And I actually do think that bankruptcy would solve core issues: a clean slate would allow things to be built a new in a more sustainable way.
It's my understanding that bankruptcy did wonders for New Zealand. It's not a wonderful option, but sometimes it's all that is left. And it's the only way capitalism works.
Yes, some investors will lose that money. They were happy cashing their cheques when things were going well. Investing is a business with a risk of loss.