@Mentar: I agree even more with the way you make your point now, save for the Weimar Republic analogy... my understanding is that it was crushed by WWI reperations, and thank gods the same mistake was not repeated after WWII. Also I don't disagree that Greece cheated to enter euro, but in way so did Germany,
when they adjusted the targets for them (BBC should be OK).
Anyway, your arguments, I have heard countless times from my brother who was working several years in Germany and got screwed twice with the Greek bailout, because he had to pay for it as a German employee and again as a Greek citizen owning property, add to that that many times he didn't get the best reactions because of all the rhetoric there... in the end despite being very critical of his own country's screw ups, he moved to another country. Look as monsta666 wrote, it is unfair to attach political decision to the population, many of us know that not every German agrees with Bild/Focus and Merkel, but also not every Greek is a lazy crook, or Cypriot the whore of a Russian mobster.
Despite justification all solutions Germany and IMF enforced in troubled countries have made the problems far worse then before their intervention... just think how would you feel Germany had close to 30% official unemployment or if you went to your bank and saw that 10, 20, or even 40% of your company's capital disappeared... and all these not because you individually did something wrong, but because politicians of your own and allied countries were lying to you for a decade. I am just saying before blaming the demonstrators as stupid, try to understand the shock they have to overcome in order to react rationally, both Cypriot and German.
As for the solution and disaster you mentioned, these are to extremes, we blindly follow one in the justified fear of the other... I think that there can be a middle way, particularly if politics in every country begin to consider the well-being of all their citizens and not numbers that their "legal sponsors" only care about.
PS: I found a mention for the 40% from a German source, citing CyBC
here.