http://economix.blogs.nytimes.com/2010/05/06/its-not-about-greece-anymore/?hp

The Greek “rescue” package announced last weekend is dramatic,
unprecedented and far from enough to stabilize the euro zone.

This new program is honest enough to show why it is unlikely to succeed.

Last week the European leadership panicked — very late in the day — when it
realized that the euro zone itself was at risk of a meltdown.

Slapped in the face by this ugly scenario, the Europeans decided to throw
everything they and the I.M.F. had at bailing out Greece. The program as
announced has only a small chance of preventing eventual Greek bankruptcy, but
it may still slow or avert a dangerous spiral downward — and enormous collateral
damage — in the rest of Europe.

There is still a narrow escape path, without immediate debt default and the
chaos that that would produce:

1. Talk down the euro — moving toward parity with the American dollar would help
lift growth across the euro zone.

http://www.nytimes.com/2010/05/07/business/07markets.html?hp

The uncertainty pushed the euro to its lowest level in 14 months,
at $1.2598 to the dollar.

http://krugman.blogs.nytimes.com/2010/05/05/greek-end-game/

Many commentators now believe that Greece will end up
restructuring its debt — a euphemism for partial repudiation. I agree. But the
reasoning seems to stop there, which is wrong. In effect, the consensus that
Greece will end up defaulting is probably too optimistic. I’m growing
increasingly convinced that Greece will end up leaving the euro, too.

http://www.nytimes.com/2010/05/07/business/global/07ecb.html?hp

In the absence of a strong European central government, the E.C.B.
is the main institution standing behind the single currency with the political
independence to act quickly. But the crisis has sorely exposed the bank’s
limited powers, and influence, especially compared with its U.S. counterpart,
the Federal Reserve.