That is the question. Here are two views from the opposite ends of the spectrum. Avinash Persaud thinks its good policy to bail out banks and bond holders. In the other corner of the ring is John Cochrane, free market gladiator extraordinaire, who tells us of the virtues of inflicting severe pain upon those who speculated. The interesting detail here is that Greece lied about its deficit, so one cannot really talk about fair play, or rational expectations on the part of investors… So punishing those who believed the Greek government seems to be counterproductive to me.