The Vicious Cycle of Sovereign Selling

So, lemme get this straight. Concerns are sweeping Wall Street that member-listed firms—such as Jefferies (JEF) and the now-defunct MF Global (MFGLQ.PK)—have too much exposure to sovereign debt... which leads to them selling that sovereign debt... which triggers higher rates for those countries as they issue new debt... which makes it harder for them to service their old debt... which requires more debt auctions to shore up their finances... which obviously requires buyers... which are traditionally the member-listed firms that are trying to shed sovereign debt in the first place?