Robert Rubin, the man who in 1995 orchestrated the rescue of those who lent money to Mexico, had some second thoughts in 1997. This is from a WSJ article by David Wessel with the headline, Rubin Says Global Investors Don’t Suffer Enough:
Treasury Sec Robert Rubin, in remarks to reporters in advance of trip to Hong Kong and China, says global investors are not sufficiently exposed to risk of lending money unwisely to countries that are on unsustainable course; offers no solution;
(This appears to be the whole article (retrieved via LexisNexis) but it reads like an abstract.)
Hmmm. I think he was on to something. I have a solution. How about making creditors take losses?