When you have a run on the banks, it is too late for spending cuts to fix the problems. The stupidity here was that the debt repayment is unsustainable at 1.8x GDP. Greece got themselves into this, with the willing help of the EU, ECB, & IMF. All players are going to have to figure out a way to fix this... and of course the real problem isn't Greece but how the entire European Union functions.
Quite honestly, I can't see any good resolution coming from this. If Greece is pushed out, the other PIIGS might end up the same way, and the Euro starts to look more like a currency shared by France and Germany, with a whole lot of angry people around them.