On a more pragmatic note this to me is a simple trading question – a loss exists and various governments and banks are prevaricating about taking this loss. Many have been overtaken by the common belief that if you dont crystallise the loss then it is not a loss. Nobody said people inside governments were very bright.
This is somewhat akin to the attitude that permeated Japan following the collapse of their financial system in the early 1990’s. As a result the Japanese market has been in decline for two decades. If Europe is not careful and if it does not effectively repossess Greece and force its inhabitants to confront the reality that you cannot have a lifestyle based around not paying taxes, tolerating corruption at all levels and then expecting the Government to pay you a pension equal to the job you never went to anyway. It is quote possible that Europe will lose two decades like Japan.