Unless the high end of the 10-year Treasury yield curve tips up significantly, or deflation kicks in again, the real cost of federal borrowing won’t be 4% for quite a while. Some fiscal discipline would be welcome, but it doesn’t look like the bond market’s going to impose it any time soon.

It’s really not about a pack of wolves, but about a herd of sick sheep.
And it’s not about Greece, or ‘contagion’ but about a dysfunctional and sub-productive political and economic system in Europe, that pays too many people too much for doing nothing, creates too few jobs, and doesn’t generate enough growth.
Now this system demands from the citizens of the healthier and more responsible EU countries to subsidize the failed EU states (and that’s what they are).
It’s not going to be easy, and Europe is flying into a big cloud of thick ash.