March 03, 2009Holy CrapThis outlook on the global economy speaks of some major upcoming woes for the EU and the value of the Euro...which is in turn certain to impact the US economy and the USD: The gist is that European banks are required to maintain less capital than US banks, but are even more exposed to toxic debt as a result of the last decade's worth of investment in (and slurping up of) Eastern European banks. Now, that would be bad enough if the Eastern European banks were failing (and they are), but to make matters worse, the EU banks took positions of maintaining even LESS capital by buying insurance against bad debt. ...and a lot of that insurance was sold by... you guessed it, AIG. Posted by camisade at March 3, 2009 06:51 PM | TrackBackComments
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