Merkel thinks she’s all in: she’s going to keep the EU together (by bailing out the financial system) and kick the can down the road till 2013 (after the Bundestag German elections). The problem? She’s really only half in.
How long will the Greek people accept the current situation? (The current situation: austerity, an economy shrinking, pain and humiliation.) They WILL NOT inflict this on themselves for the decades needed for Greece to get back on track. As we have commented before, austerity is not a solution.