Investors should expect to see more sovereign debt defaults, says Marc Faber, the editor of The Gloom Boom & Doom Report.
He said sovereign debt defaults occur after a financial crisis.
The countries to look out for now are Portugal, Ireland, Italy, Greece, and Spain.
Countries will have problems paying their debt, he told Yahoo Tech Ticker.
Portugal and other countries have a great likelihood of defaulting occurring even as soon as the next two years, he said.
Defaults from those countries could also kill the euro, Faber said.
Confidence in Greece is waning as its deficit rises and credit ratings are slashed, Reuters reported. Greek’s weak economy is affecting the euro.
“What is really crushing the euro is additional concern about the serviceability of the massive amount of debt rung up in Greece,” said Dan Cook, a senior market analyst at IG Markets in Chicago.
While that issue remains up in the air, “we will likely see a lot of selling pressure on the euro,” he said.
Last month, Moody’s Investors Service and two other major agencies decreased Greece's debt rating, Dow Jones reported.
Moody’s said that Portugal and Greece, which both have high levels of debt, could experience a “slow death” while much of the countries’ money is needed to pay back its debt.
Investor sentiment about the ability of Greece to repay its debt is waning.
“The central bank has clearly chosen to maintain its pressure on the Greek government, rather than easing the heightened tensions in bond markets,” said Laurent Bilke, a former ECB economist now at Nomura International PLC in London.
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