This will cost Merkel the election in Germany.
Perhaps. But a deep recession in the EU triggered by the issues in Greece and Spain will cause a recession in the U.S. and cost Obama the election here.
I am not wishing for economic troubles, but I see no good way for Europe to make it through this mess.
Personally, I think the weaker countries exiting the Euro would benefit the European economy as a whole. Similarly, Germany exiting the Euro would similarly help. Right now, the stronger EU countries are subsidizing the bad behavior of the weaker EU countries.
I hope not. But, frankly, I want the Greeks to suffer greatly. They have not learned their lesson. This should serve as a deterrent to other profligate nations, such as the US.