How to Save Euroland (Choose One)

Solution 1: German and other northern European taxpayers bail out Greece, then Ireland, Spain, Portugal, and Italy, perhaps through the mechanism of Eurobonds that will internationalize the bad debt and lower the interest payments (bad for Germans et al and therefore for the future of the European unification process)

Solution 2: European banks and the ECB take the proposed "haircut" on their loans to Greece and eventually loans to other profligate countries (worse, due to the prospects of a systemic banking crisis that leads to another credit freeze worldwide, as banks collapse when their loans to Greece et al have to be written down or off)

Solution 3: Greece defaults in a disorderly process (a worse variant of Solution 2), and then leaves or is tossed out of Euroland. It can then start fresh with the drachma and inflate its way out of any future debt crises (worse still, because Greek banks will collapse when every Euro now on deposit is withdrawn in a panic because Greeks fear their money will be forcibly converted to drachmas).

So, unless I'm missing something, the northwestern Europeans are going to have to foot the bill, and then figure out how to establish a European-wide fiscal policy that is ironclad and will prevent future excessive borrowing by member states. Good luck with that. But remember that it's still a lot cheaper than the wars that recurred every decade or so before 1945.