70% Haircut on Greek Debt?

If I were sitting on CDOs on Greek Debt I would just let them default instead of taking 30 cents on the dollar like this.

The person said Monday that the 70 percent loss was produced by cutting the bonds' face value in half, reducing the average interest rate to less than 4 percent and pushing repayment of the bonds decades into the future. 

Also I would be loathe to loan any of the debt-soaked southern European countries one single dollar more if this kind of thing could happen again. I hope whatever compact the Germans impose on the rest of Europe puts in place an automatic expulsion of a nation that gets over a certain debt level. That might have headed off this crisis at the very beginning and let the Greeks inflate their way out of this problem by bringing back the Drachma.