We (Euro zone) have:
- Greece being kept alive pretty much for its 'spare parts' (privatizations)
- Porto just gone into coma with the latest downgrade of its bonds to junk,
- IRL in an ICU on an artificial respirator (see the bottom line on Irish Exchequer expenditure here)
- Spain feverish & fading out of consciousness on negative watch and with banks starting to implode (HT to Namawinelake, Spain is facing €660 billion of redemptions in 24 months ahead and with banks providing just 10% provisions cover on €450 billion worth of development loans)
- Italy getting the first symptoms of the deadly debt/banks spiral virus (negative watch for ratings and latest signs of banks starting to slip)
- Belgium on the trolly about to be wheeled into casualty department
1 comment:
Nice analogy. Do you think a failure of Ireland and our fellow 'patients' to repay debt could see France and Germany joining us in the hospital ward? Surely the sheer scale of the potential losses of French and German banks (I think their combined total exposure to PIGS is around 900 billion euros according to the BIS) would at the very least raise doubts about the fiscal stability of the two countries at the very heart of euroland.
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