Now that Greece has quit paying its bills and shuttered its banks, the next stop is Puerto Rico. They owe $ 72 billion that they can't pay, pretty much for the same reasons as Greece.
The education of sovereign bond buyers is just beginning. There are more defaults ahead, both in Europe and more in the US as well. The state of Illinois and city of Chicago have absolutely no hope of avoiding default....no hope at all. California and New York are in line as well.
If you look at the numbers, the ultimate outcome is inevitable even if the media seems to think that there is a never ending supply of bond buyers willing to underwrite folks that are doing nothing. It's just a matter of time until reality arrives.