If you take sovereign credit default swaps seriously (and some don't), traders now think there is a more than 70% chance of Portugal defaulting during the next five years.

BBC: More market alarm bells on Portugal

The change in mood whipsawed European sovereign bonds and the credit default swaps to protect against their default.

FORBES: European Debt

There are rumours that Greek banks have also been keen sellers of credit-default swaps on sovereign Greek debt, in effect doubling up on their exposure to a debt crisis.

ECONOMIST: Sovereign risk and the banks

Yet globally linked banks simply send this new money offshore, creating jobs in other countries or betting with credit default swaps on which European sovereign bonds would default.

FORBES: Hazel Henderson: There is 21st Century Abundance Hiding in 19th Century Scarcity Politics