[jyl]

So I looked into it a bit, and discovered that the Eurozone powers have successfully accomplished one of their goals.

Their banking system, in particular Germany's banks, have been mostly bailed and/or insulated from their ill-advised purchases of Greek govt debt. As of earlier this year, only about EUR60BN of Greek debt remains held by the private sector which includes Eurozone banks, and most of that has enhanced credit protections. The banks sold most of thier Greek debt and some was down. The rest, appx EUR240BN, is in public hands: EUR50BN held by the ECB and about EUR190BN by the EFSF which is in turn backed by the Eurozone govts.

So now, if Greece defaults, the losses will be mostly borne by the Eurozone govts, which means primarily by Germany who is the financial big man in Europe. As I explained before, most of the money to service that debt is, in the foreseeable future, coming from Germany and the other Eurozone govts. To oversimplify, money is going from the German govt to Greece and turning right back around to go back to the German govt.