Total lending to emerging markets is now some $4.7 trillion, 74 % lent by EU banks

Discussion in 'Economics' started by ASusilovic, Jun 10, 2009.

  1. Still uncertain as to the relevance of all the fuss over tottering Eastern European, South American or Asian economies? Uncertainty begone. Says JP Morgan’s Joyce Change, via Felix Salmon:

    1. Total lending to emerging markets is now some $4.7 trillion.
    2. 74 per cent of that was lent by European banks.
    3. Both Austria and Netherlands have lent more than 50 per cent of their GDP to foreign developing nations.

    QED: The EM corporate loan market is now five times the size of the corporate bond market.
  2. I'd be skeptical about these large estimates. The structure of the debt varies and, in fact, a large proportion of it (I think arnd 50%) was structured through local subsidiaries that don't have a legal call on the parent's assets. So it's really not that horrible...

    Moreover, the Swedish FSA just did a stress test of the banks and concluded that they're OK. I am inclined to trust them in this. See the slides...
  3. S2007S


    Every market around the world has been pumped up with liquidity to prevent a meltdown, how anyone could believe that forcing markets up is a positive is beyond me. Trillions and trillions being pushed through the system. Because that's the way to fix a credit crisis.

  4. Still short?
  5. Still short then?
  6. When "they" turn into submerging markets, it really sucks. :cool: