Had Greece simply defaulted a year ago, the cost may have been haircuts of $50 billion..

http://www.acting-man.com/?p=8402

"...At the risk of sounding like party poopers, we want to point out that Greece is just as bankrupt today as it was yesterday. Nothing has changed on a fundamental level. The eurocrats have 'bought more time', which in this case is the equivalent of handing out more rope to hang oneself with.

Below are a few things that have caught our eye in recent days that look like they are worth keeping tabs on. Firstly, a slightly disturbing news item flew in under the radar screen while everyone was focused on Greece.

The euro area's latest bank 'stress test' farce has been concluded, and apparently 15 of the 91 banks tested were found to be undercapitalized. This may not sound like a big number, but consider that these 'stress tests' use the most benign of assumptions..."

How extreme does the situation have to get for this to be referred to as "a lot of banks" ?

the author did say "This may not sound like a big number..."

:shrug:

Both government and private debts are at record levels.
The longer this is postponed, the more dire results await us.

if a country defaults, their bonds are not accepted as collateral
by the European Central Bank

it is wast money to save Greece

It's about saving the French and German banks and the American firms who have written default swaps on Greek debt.