Argentina defaulted on repayments in the 1990's I think, and yes for a long time the markets effectively blocked them from getting more debt... But due to defaulting on payments they were able to rebuild their economy much faster and get themselves out of the mess.

IF Greece were a separate country, it might be worth accepting the Market's ire and default to get the mess sorted out once and for all. The Market is already heavily discounting their debt as this is a possibility, so they are currently getting all the pain for no gain.

I realise Argentina is a much bigger country and I believe can now gain finance on the world Market again as, frankly, there's money to be made and that's the bottom line. If things were to get bad again they might get worse faster as at that point the spectre of another default would arise.

Iceland might be better served being a pariah for a bit and sorting things out, rather than lumbering itself with debt for God knows how long.

Of course, as a Creditor I think we should go and forcibly take some assets as collateral to be on the safe side.