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Tuesday 25 June 2013

So how much money is going to be loaned out? - by Ziad K Abdelnour

Well, it seems that big European banks are going to be able to borrow ‘any amount’ of money in three separate auctions in October, November and December. Banks will have to put up collateral, or security, to tap the emergency funds.

But it’s not just Europe …U.S banks and money market funds are exposed to the meltdown in Europe as well. So the meltdown in Europe could and will most probably cause real problems in the U.S

Indeed, if Wall Street insured much of the European debt through derivatives contracts, the fallout could be amplified many times over.

The less conservative figure, the gross exposure, is $78.7 billion for Greece, according to Markit. And there are many other types of contracts, like about $44 billion in other guarantees tied to Greece, according to the Bank of International Settlements. The gross exposure of the five most financially pressed European Union countries — Portugal, Italy, Ireland, Greece and Spain — is about $616 billion. And the broader figure on all derivatives from those countries is unknown...Know more

Private Equity Investments, Financial Planning, Economic Warfare

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