Despite the weekend deal that will see Greece meet its upcoming debt repayments, futures traders are still beating against the euro. Large speculators remain pessimistic about the future value of the shared currency and point to Spain, Portugal, Italy, and Ireland as future as all potentially needing bail-outs on the same level as Greece.
“Greece is a Lehman Brothers for the sovereign world,” Robin Marshall, who helps oversee $20 billion as director of fixed income at Smith & Williamson Asset Management in London, said yesterday. “A 100 billion euro package is a big amount and it might help to buy Greece some breathing space, but as an investor I’m still cautious. Policy makers can promise what they like, I still have doubts that the Greeks will have the stomach to take these tough measures.”