> The short term consequences of Greece crashing out of the Euro is going to be very painful for Greece.

For Greece? Greece will recover, and it's hard to do worse than it is currently doing. And as others say, a floating currency will help correct the imbalance of an exporter like Germany dominating the EU.

And bizarrely, I suspect investment will be quick to return if Greece is seen as being out from under its cloud. Investors seem to care less about previous behavior than about future prospects.

> It's a really bad strategy in that it doesn't prepare the Greek people for anything bad happening.

No... Germany stands to lose the most, because the likely eventual outcome is the collapse of the entire monetary union, and the wide markets that Germany has enjoyed.