The German Finance minister has ruled out a 3rd bailout for Greece, but he is just playing his role. The math is very simple:
Greece faces a financing gap of 14 billion euros in each of the next two years, a delegation from the so-called troika of the European Commission, European Central Bank and International Monetary Fund has found, according to Spiegel magazine today.
A Greek exit of default would be a Lehman-sized catastrophe. For two easy payments of €14bn over the next two years, this catastrophe can be avoided. Therefore, Greece will get is money and continue slogging along.
The ECB has already allowed Greek banks to purchase €3.2bn in treasury bills from the Greek government which were quickly rehypothecated to the Bank of Greece for cash. While there will be no official third bailout due to angry voters in Germany, backdoor bailouts like this will continue until the entire system crashes.
I have one more item. Do not believe people who claim that the Eurozone is in better fiscal shape than the United States. The Eurozone is much older, has a lower birth rate, has less land to develop and possesses less natural resources than the US. This means that its growth prospects are much lower for the future and its debt more unsustainable.