Privatizing too much too quickly to pay off loans is analogous to chopping off limbs when you can't pay the mob. It makes the people owed money feel better, but means that they will never really get paid back, because the debtor can no longer function.

I do not agree with you. As far as I know, the loans did not involve collateral ( at least not until now ), so investors are just entitled profits from interest and have no claim on assets.

I don't know if Greece is a third-world country, but definitely the Greek government managed this crisis are such, so it looks like Greece is going to share their fate.

Greece looks First-world to me: http://en.wikipedia.org/wiki/Third_World

Greece is a sovereign borrower not subject to asset seizure. Their debt is not collateralized.

Corriere della Sera (an Italian newspaper) claimed that Finland wanted the Acropolis of Athens as collateral for their part of the loan, so yeah, you can actually ask for way too much.