Greek Bailout a Serious Mistake?

 The bailout of Greece may well be a serious mistake.  This laxist decision has been compounded by the European Central Bank accepting Greek junk bonds as collateral for huge loans.  Better by far to have suffered the pain and inconvenience provoked by Greek bankruptcy, rather than risking the Eurozone Institutions by betting the PIIGS, not to mention France, will not make similar calls to prop up their profligate spending and irresponsible borrowing.

The point is that Greek bankruptcy and restructuring of its debts need not imply Greece leaving the Eurozone or the EU. Just as the bankruptcy of a relatively unimpoprtant State in the United States does not require the bankrupt State to leave the Union, or force it to cease using the US dollar. Further it should be noted that such a bankruptcy would not damage the dollar or the authority of Federal Institutions.

Foolishly, the importance and significance of the Greek crisis has been an importance that permits it to contaminate the future viability of European Institions.  Institutions that have no effective control over PIIG expenditures, because the European leaders so decided.

Fortunately, for the Eurozone the risks of UK insolvency do not directly threaten the viability of the Eurozone Institutions.