It seems apropos that Central Banking has morphed into a question of Greek philosophy. Physis, is the Greek word for natural and the idea of Natural Law. Nomos is the root for "custom" or more accurately, "convention." Central Banks around the globe are now engaged in pushing back against the natural order of things.
Every person involved in the mess known as the Euro-Zone understands that Greece cannot pay its obligations. Nomos, and a distorted understanding of the Lehman collapse, are keeping them from facing the reality. Defaults, even national defaults, are common events in credit cycles. It is the concept of subverting loss recognition that is new.
Somewhere, Eric "Otter" Stratton is smiling. As he said to Flounder in Animal House, "You can't go through life worrying about your mistakes. You f-ed up, you trusted us." But no one wants to be Flounder when Otter has all the fun, so the Nomos-palooza continues.
The problem I have is that bolstering and fire-walling the system to survive loss recognition shocks is not the same as solvency delusion. The attenuated process of Euro-Physis is to build the cushion that will have to absorb the inevitable. In the meantime, more monetary madness is in store.