<blockquote>'The mounting debt burden of the world’s most developed nations, set for a post-World War II record this year, is unsustainable and risks a future fiscal crisis, the International Monetary Fund’s John Lipsky said.'
- Kevin Hamlin (Editors: Shiyin Chen, Chris Anstey),
Lipsky Says Advanced-Nation Debt Risks Future Crisis as Yields Set to Rise, Mar 20 2011</blockquote>
'..the extreme leverage of Germany's banks: 52:1 on average. By comparison, defunct Lehman Bros. was leveraged 33:1..'<blockquote>'A chart of bank leverage relative to economic output and as a percentage of bank assets to tangible net worth. Note the extreme leverage of Germany's banks: 52:1 on average. By comparison, defunct Lehman Bros. was leveraged 33:1 (of course its assets consisted in large part of toxic junk - the overall asset quality of Germany's banks is surely better. Nevertheless, only very little needs to go wrong to sink a bank with such a degree of leverage. A 2% hit to bank assets would suffice to wipe out the entire tangible net worth) –
click for higher resolution.'
-
The Next Phase Of The Debt Crisis, February 21st, 2011
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Throwing More Good Money After Bad – Euro Area Update, March 15th, 2011
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A Proliferation of Black Swans, March 16th, 2011</blockquote>
