The way it is going a hard Greek default might actually make the market go up. They are definitely going to default, it is just a matter of whether they go hard or soft.
The situation is much better now than it was at the beginning of the problems with Greece, even at the end of 2011. Now the US is thought to be recovering. Italy has even had some improvement along with the rest of Europe. The ECB loaning money to the banks increased the liquidity sufficiently to cut the outright panic. The Eurozone could take the funds meant to bail out Greece and use them to try and fund the banks that will lose money if Greece leaves the Euro and doesn't pay any of their debts. The majority of Germans would rather that Greece left the Euro than they have to pay to support them.
Greece probably can't be saved in the long run. They just don't seem to have the will to make the changes that are needed, or maybe they can't. They don't have any exports worth mentioning and they import their food and their fuel.
Just my opinion of course. I'd like to see it resolved one way or the other but I think either way will do, with a slight preference to them leaving the Euro because otherwise I think it's going to keep coming up for a few more years until they do leave.
