The Truth About Europe That No One Is Talking About !

Who said debt doesn’t matter?

Socio-Economics History Blog

  • The Truth About Europe That No One Is Talking About ! 
    by Graham Summers, http://gainspainscapital.com, via http://www.goldseek.com/ 
    I realize that the situation in Europe can be very confusing. Aside from the fact that we’re dealing with over 20 different countries all with their own respective economies and debt issues, we also have the European Central Bank and the numerous bailouts and bailout funds (the LTRO 1 and 2, the EFSF, the ESM and now the OMT) to keep track of.

    So for clarity’s sake, I’m going to explain Europe’s problems in simple terms. The first thing you should know is that European banks, taken as a whole, have far more leverage than their US counterparts. According to the IMF, US banks are leveraged at 13 to 1.

    European banks are leveraged at 26 to 1. Put another way, they have $26 in assets for every…

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