The founding fathers did not want to rely on this alone. This is why they adopted the no-bailout principle: so that the financial markets could exert disciplinary force. However, this hasn’t worked all that well in the past, either.
The sovereign debt crisis of some euro-area countries The strains spread outwards from Greece, where they had been generated by the disorder of that country’s public finances, and hit the Irish and Portuguese government securities markets last spring. Spanish and Italian government bonds have also seen their yield spreads widen with respect to the corresponding German securities.