There are all sorts of in depth analysis showing that the current crisis was just kicked down the road and a host of analysis expecting sovereign defaults to kick in and start "phase 2".

On MEET THE PRESS today:
MR. GREGORY: A disturbing report on Wednesday in The New York Times talked about people underwater in their mortgages. "The number of Americans," the paper reported, "who owed more than their homes were worth was virtually nil when the real estate collapse began in mid-2006, but by the third quarter '09 an estimated 4.5 million homeowners had reached the critical threshold, with their home's value dropping below 75 percent of the mortgage balance. ...according to Sam Khater, senior economist with First American CoreLogic, "People's emotional attachment to their property is melting into the air.'"
Q. Secretary Paulson, what happens if housing prices go down again?
MR. PAULSON: It clearly wouldn't be good. It's very difficult for governments to design a program that is effective and fair to taxpayers...historically, everyone would do whatever it took to make the mortgage payment and avoid default...And when the home is worth less than the mortgage, behaviors tend to change."

MR. GREENSPAN: "Well, I am very much concerned if home prices decline. The reason I am is that during 2005 and 2006, there were eight million home purchases with so-called conventional conforming mortgages with the 20 percent down payment. That down payment is gone, and we have this very large block of homeowners who are right on the edge of tilting down into that underwater category. Fortunately, the evidence suggests that the vast majority of these homeowners--that is, those with standard, conventional mortgages--continue to pay on their mortgages...even if the value in the homes is below the market price. Or rather, what worries me particularly is that there is a very large block that will be thrown on the market, I mean people starting to foreclose, if prices go down significantly from here."

Frank T.

That's a nice concise wrap-up. In and of itself a Greek bankruptcy or bond default should -in theory- not affect the Euro as such very much, Greece being maybe 3% of the total. However, just as a Californian bankruptcy (probably inevitable, large US cities at least are already contemplating insolvency, ten idividual states may well follow) would reflect badly on the "state of the Union" as a whole so would the default of on EU country, coupled with the rising interest rates and thus further destabilisation of the remaining over-leveraged member states, make investors wonder when sovereign default across the board is likely. Thus they wouldn't commit themseves to bonds of longer maturity and that's the beginning of the end.