Joe Stiglitz calls for Europe to "teach the speculators a lesson." He is a principled man, but may his views be blurred by the government that pays for his services? He insists he "Sees No Greek Default as ‘Speculative Attacks Persist". So much for the good news for Greece (that a economics nobel laureate thinks the crisis is overblown).

Now for the bad news: What would have to happen to "teach speculators a lesson?" Here is a hint (from Stiglitz himself – so its not as if the Greek government did not hear that one coming):

 "Economist Joe Stiglitz, who is advising the Greek government, last night denied that the country would require a bail-out, and urged national authorities to intervene in markets to "teach the speculators a lesson". Likening the situation to the Asian financial crisis, in which even healthy economies were targeted as hedge funds and investors withdrew from the region, he told the Sky's Jeff Randall Live show: "The speculators will always look for the weakest link. What they're doing now is a version of the Hong Kong double play in 1997 /1998. "What Hong Kong did in response was to raise interest rates and intervene in the stock market. They burnt the speculators and Europe needs to do the same thing." 

Hong Kong had to raise rates to 500% (!!!!) during the crisis to ward of speculators. Are the Greeks going to do that, too? And what will the ECB have to say about that one?