So Italian 10y yields are above 7% and could be heading for double digits if the ECB buying is not enough to support the market. And the real possibility of all five of the PIIGs defaulting and leaving the Eurozone exists. Which institutions will fail? MF Global might seem like small fry if the above scenario unfolds. Whether "Rule 1.29" (http://www.forbes.com/sites/robertl...-6-3-billion-trade-without-informing-clients/) really allows segregated customer funds to be parked in European sovereign debt or not, we know that all kinds of entity from sovereign wealth funds to brokers/banks are heavily invested in this crap. Presumably when they started to buy up the PIIGS debt in prior years it was considered "risk free", and you can only imagine the extent to which positions were added to as better (higher) yields became available. So how will events unfold if the PIIGS all default one after another, and how will policymakers react? More bailouts and money printing, or will the noises coming from the OWS crowd change the response this time?