The Greek masses are revolting:

Public sector workers in Greece have launched a nationwide strike in protest at government measures to tackle the country’s huge budget deficit.

Flights have been grounded, many schools closed, and hospitals are operating an emergency-only service.

The government wants to cut pay, reduce pensions and revise the tax system…

Greek Prime Minister George Papandreou has already faced down a three-week protest by farmers demanding higher government subsidies.

Hey! We can’t pay our way. So you government types in Athens need to force other people in the EU to pay for us! What’s the matter with you all out there? Don’t you care about our feelings?

A superb Negotiation between Germany and the Markets. The more desperate the situation in Greece, the more the German government has to scramble around for options while at the same time appearing to stand firm against a bail-out, since wobbly noises might make it even more expensive when it finally happens.

But maybe it is best to bring in the IMF, humiliating as this might be to the Eurozone, and let them take the obloquy and rage of the Greeks as they thrash around in the mess they have made for themselves?

Comfortless as this situation is for most practical purposes, it is nonetheless instructive and helpful to see so stark an illustration of the Reality of the Consequences of Evading Reality.