Greece should not be bailed out, not by the EU or by the IMF. If it's bailed out, it will have its policies dictated to it by the IMF, which will cause huge resentment. A bailout will also reward financial recklessness, because other countries will think that they can spend spend spend until the IMF bails them out. They'll also be paying off the loans for ages, a real millstone around their neck.

Here's what should happen. Greece should default on its debts. It should stay within the Euro. It should carry on with its austerity measures. Greece has a moral duty to eventually pay off the debts, but it should do so at its own pace. At no time should other countries lend to it!