Is Greek default likely to spread?

An interesting question and my answer would have to be: Yes, but neither as fast nor with the same effect as the ash from an Icelandic volcano.

You have to remember that the international Credit Default Swap market is worth trillions.  Even now that the committee has decided that payment is due the markets will not wobble.  The simple fact is that international marketeers are almost by definition the most practical of people and will have seen this event coming.

With equal certainty there is now a ‘queue here’ sign and further defaults will be expected.