The euro will hold

MarketWatch:
"... The most vulnerable countries like Greece and Spain indeed confront a mounting debt burden, which will likely lead to more ratings downgrades and more market sell-offs. The path to fiscal health will require painful, unpopular reforms.
But, most analysts agree that the European Union will, if necessary, bail out its members and never let a country's fiscal situation deteriorate to the point of sovereign default. Those rescue expectations continue even as terms of euro entry explicitly forbids such moves. See story on the EMU fudge.
"If you think Greece is going to default, you should sell all the bonds of Spanish and Italian and Portuguese companies, because you think the euro will fall apart," said Philip Gisdakis, credit strategist at UniCredit. "And that is something that I think is completely exaggerated."
"There is a lot of misunderstanding in the market about the importance of Europe and the euro-zone on a political level," he said. "Europe is a question of warranties. They are going to support countries like Greece and Ireland."
The members of the European Union -- which is both a political and an economic alliance -- are closely interconnected and have too much to lose if one of them defaults.
That is especially true for those 16 countries which share the euro as their common currency. See story on playing the crisis..."
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