@shriprakash, I don't know you, you don't know me. So, first of all, there is no reason that you be sure of my intellect. As I wrote before, It was written in layman's term. The language used was in no standard to any economy books. But mind you, I'd already been repeating this phrase every para "ek dum simple bhasa ma bhannu parda..." just to avoid blatant comments like yours.

your comment is just appropriate as an answer only to my first sentence , "Why does money(in this case euro) lose it's value?"..
and besides, it seems you only tend to have book knowledge, the real solution to euro crisis is proposed to be the inflation, short term one. You wrote investors are scared of failing euros and buying dollars as safe haven, well, it happened many times before as well. But they survived. They will at this time as well either by buying bonds, inflation or bailout.. whatever way, they'll sustain. Don't you remember, just a month or two ago, how american dollar was seen and how at last minute it was rescued?? 
So, you saying ' inflation has nothing to do with currency crisis" is ignorant. You can flip the pages of your economy book and come tell me. I work in the field and will try to shut your adamant attitude with my experience.