It looks like the long term memory has not failed investors. With GFC not really that far behind us it would appear that investors just dont want to get caught out on either side. Volatility a bit all over the place lately and the fear of contagion is high. Lets put some perspective around the Greece economy though as it is roughly the size of Vietnam. Ten years ago or perhaps even today if someone told you that Vietnam fundamentals are looking very shaky would the world start to panic?? My two cents worth is perhaps its not a Greece issue but rather whether the European Union is strong enough to hold itself together and whether as a collective the decision making qualities are intact - it is of course very difficult when governments still have autonomy. If one country was to leave, would others which faced a similar fate in the future be next.
The highlight for me though is there did not seem to be a robust governance structure or oversight as to how governments accomplished tasks after the last round of funding. A number of other "Club Med" countries appear on the surface to have done the right thing - but just how did Greece end up this way. The tangled web we weave my friends !!
Personally I am more worried about China and whether China will assist or hinder the global growth story.