http://news.yahoo.com/s/csm/20090414/cm_csm/[WORD TOO LONG]
The next global economic shock?
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The problem for Western European finance is that it holds most of the international loans in these sinking economies. European banks, for instance, hold some 54 percent of the $1.4 trillion of foreign bank loans residing in the Asian emerging economies. (For perspective, American banks hold only 15 percent of such debt.) Of the $1.8 trillion of foreign bank loans in Eastern Europe, more than 70 percent resides in Western European banks.
The economic difficulties in these regions are bound to pressure European finance, where, according to the International Monetary Fund, bank leverage exceeds that of American banking by 50 percent. It is hard to make American banks look prudent, but the Europeans seem to have managed.
The aggressive nature of European lending has created a particularly difficult regulatory situation should circumstances require a rescue operation, as the American subprime excesses did in the United States. Because European banks are far more extended than American banks are, their governments and even the European Central Bank lack sufficient resources to replace lost capital, as the Federal Reserve and the Treasury are doing in the United States.
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Originally posted by zeeblebotBla bla bla.
The aggressive nature of European lending has created a particularly difficult regulatory situation should circumstances require a rescue operation, as the American subprime excesses did in the United States. Because European banks are far more extended than American banks are, their governments and even the European Central Bank lack sufficient res ...[text shortened]... ce lost capital, as the Federal Reserve and the Treasury are doing in the United States.
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EDIT: euroweenies ?? No wonder some Europeans think Americans come off as arrogant, ignorant idiots.
Brave thing.
First the stupid and greedy ones screw the world economy lending and spending irresponsibly, just to packetize the junk and sell it in the markets, and now they want to say
- "b-b-b-b-but everybody does it!" and/or
- "b-b-b-b-but it's worse over there!" and/or
- "hey, stop looking at me! Look, there, the chaos is coming!" and/or
- "I didn't do it!"
Land of the brave?... Pffff
Originally posted by SeitseChina is not the land of the brave, Seitse....come on, we know it's Finland. Yeah, those Chinese sell just about everything to everybody these days.....
Brave thing.
First the stupid and greedy ones screw the world economy lending and spending irresponsibly, just to packetize the junk and sell it in the markets, and now they want to say
- "b-b-b-b-but everybody does it!" and/or
- "b-b-b-b-but it's worse over there!" and/or
- "hey, stop looking at me! Look, there, the chaos is coming!" and/or
- "I didn't do it!"
Land of the brave?... Pffff