The action needed to convince market participants that the hypothesis is unrealistic and to stop the mounting speculative wave has to be firm. Vague statements that some event, such as a default, will not occur, are not sufficient to calm the markets. Concrete actions are needed. This was not fully understood over the last few months.
But there is another element which might have been underestimated and needs to be further considered in thinking about how our democracies can cope with certain financial market developments. As an increasing number of investors take positions based on the same hypothesis, their ability to influence the final outcome increases.