Portugal has become the next target for speculators as the country faces problems similar to those of Greece. Both countries have relied on international investor appetite to finance deficits because their savings rates are chronically low. Investor demand, however, is diminishing, causing issues for the debt-laden countries. "The severely negative net national savings rate highlights the fact that the government deficit cannot easily be financed domestically, making it difficult for these countries to emerge from their debt trap," said Tim Lee of Pi Economics.

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