There should be no doubt about Greece’s ability to deal with its debt: There is not conceivable way that it can.

That is not the issue here. The French president knows that his country’s banks are in a much weaker condition than they try to let out and will probably crack under the weight of the necessary restructuring of the Greek economy so he is stalling like crazy. The German chancellor is faced with her own share of banks that will collapse and a large majority of the population who are seeing the nightmare scenario of being forced to pay for the debts of the southern European countries, so she is desperately trying to figure out a way to keep everybody friends while causing neither Greece to default nor the Germans to pay the bill. Oh, and the banks must not be told they will have to pay their share of the economic wreckage.
Between those two countries all attempts to adress the issue are being stalled. Certainly because both countries are in ‘re-election mode’ just like the USA is (and has been for the past 2 years).

Of course it all is heading towards not a ‘haircut’ for the international banks but for a beheading, seeing how they are fanning the flames of the crisis as long as the half hearted attempts by politicians to run away from the issues means they can make easy multi billion dollar profits. Like central banks offering banks loans at zero interest rate, while offering to sell bonds that do pay interest ... It does not exactly require a university study to realise that this basically pumps money around between government and banks, at a significant profit to the banks, without that money ever entering the part of the economy where it might do some good.
What happens now is that government gives a billion dollar to bank. Bank immediately turns around and buys a billion dollar worth of treasury bonds. Even at a measly 2pct interest rate that is a garantueed 20million profit for the bank, and 20 million dollar that will have to be paid by the government, i.e. you and me, at some point either through cutting spendings that are desperately needed to keep more people from sliding into destituency, or through raising taxes.

And everywhere the politicians are still trying to run away from, or sweeping the problems under the rug because the problem is bigger than any single country can solve and because they value their power above everything else.
It does not help that the average voter is an utter moron who votes with his emotional little brain instead of with his logical big one.