Considering that re-hypothecation may have increased the financial footprint of Eurozone bonds by at least four fold then a Eurozone sovereign default could be apocalyptic.
http://www.youtube.com/watch?v=AtZTGfOhB7Y&feature=channel_video_title
virtually unlimited leverage via the shadow banking system, in which there are practically no hard assets backing the infinite layers of debt created above, and which when finally unwound, will create a cataclysmic collapse of all financial institutions, where every bank is daisy-chained to each other courtesy of multiple layers of "hypothecation, and re-hypothecation."
http://www.zerohedge.com/news/why-uk-trail-mf-global-collapse-may-have-apocalyptic-consequences-eurozone-canadian-banks-jeffe
Jim Sinclair: The Impending Undeclared Default Of 5 Major US Bank
http://intheendwerealldebt.blogspot.com/2012/02/jim-sinclair-impending-undeclared.html
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