A Greek default would start in Athens, but it wouldn't be long before it's felt in Paris, Berlin, New York and Toronto. In today's intertwined financial markets, everyone has exposure to everyone else's problems.
Forgive me if I'm just being rhetorical here, but it looks to me like all the headlines about how the latest bailout of Greece enables the country to avoid default have it wrong. Greece is defaulting on its sovereign debt, and that's a good, as in "necessary," thing.
Greeks have survived countless sieges and trials. They became experts at concocting the most delicious meals with the most rudimentary of ingredients. Let's hope we have not lost the knack, because food aid may be slower to arrive this time around.
If Greece goes down, investors will flee Ireland, Spain, Italy, and Portugal. All of this sends big French and German banks reeling. If one of these banks collapses, or show signs of major strain, Wall Street is in big trouble.