It's the Insolvency, stupid!
Yesterday was the day it seemed that everyone figured out the Greek crisis is not one of liquidity but rather of insolvency.
The situation in Southern Europe now seems more and more like the Latin American debt crisis, and to me, the central lesson of that crisis for the debtor countries was, if you are going to default, sooner is much better than later.
One of the main reasons the LA crisis morphed into the dreaded "lost decade" for the debtor countries was that they kept agreeing to refinance and re-borrow and thus dragged out the crises for years.
Today, capital markets are much larger and more open than they were in the early 80s so I don't think this crisis can be dragged out for years even if the countries involved were dumb enough to want to try.
Somehow though, I don't think that the capital markets are going to get thanked for providing this valuable service!