Saxo Group Videos

Jakobsen: Greek crisis has echoes of Lehman brothers and here's why

Could the unfolding Greek saga have echoes of the dark days just before the collapse of Lehman Brothers? Yes says Saxo Bank Chief Economist Steen Jakobsen who argues that there are key similarities in terms of exposure to bad books, complacency and, he says, "Lehman was perceived as being too "difficult" to save; actually, very few people wanted to help them and don't forget Lehman paid a significant premium for funding; +100/200 bps in one-week deposits way before 2008..."

With the Dax falling around 5% as markets opened this week there could be even more downside as the Greek government takes the country to the brink.

Steen explains why he thinks the crisis may not be as contained as the markets may be leading investors to believe. Bond spreads in Romania and Bulgaria are suggesting a bleed across borders that many observers may not be taking account of.

04:27 minutes
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