That said, I live in Europe/Spain and I'm perfectly aware that A) a bailout of Spain would be nearly impossible considering the size of the economy here, B) any return to a past currency, like the Peseta, would constitute a massive default, C) a default would fall heavily on German Banks who hold these debts, pushing Europe's lead economy into danger, and/or a bailout would also have to be funded by Germany among other countries with similar effect.
Thus, it's like a dead-end street and I think that marginal markets (Spain, Greece, Italy, etc) should immediately remove speculation from the trading of their debt by limiting the use of options, short sales, etc. It increases short-term risk, but what a terrible situation when outside forces (or outside speculation) push your country into bankruptcy.