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The European banking system may have to deleverage to the tune of $4.5T by the end of 2013, says...

The European banking system may have to deleverage to the tune of $4.5T by the end of 2013, says the IMF (full report), upping its "weak policies" asset sale scenario from $3.8T at April's forecast. The result would knock 4 percentage points off GDP growth in the periphery next year. "Intensification of the crisis has manifested itself in capital outflows ... at a pace typically associated with currency crises or sudden stops."
Comments (9)
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Further deleveraging means slower growth and higher debt as a % of GDP.

     

    Debt spiral up close.
    9 Oct 2012, 10:49 PM Reply Like
  • WMARKW
    , contributor
    Comments (10244) | Send Message
     
    4.5 T in just 15 months.....ahhhhh no problem....they can accomplish that, right? They have accomplished so much these past couple years.
    9 Oct 2012, 10:59 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Why yes. If you count holding conferences and meetings and having "dialogue" as "accomplishments."
    10 Oct 2012, 05:52 AM Reply Like
  • HarryWanger
    , contributor
    Comments (180) | Send Message
     
    Wow! I'm shocked! /sarc
    10 Oct 2012, 01:46 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    $4.5T?

     

    That's alot of bagholders they are looking for.

     

    What will that do to the price?
    10 Oct 2012, 02:50 AM Reply Like
  • Pinocchio1
    , contributor
    Comments (206) | Send Message
     
    Time to break up all big banks world-wide

     

    These guys are totally clueless greedy parasites
    Limit the (small bank) activities to core one

     

    And in the process toss out all the "inventions" they introduced to the markets - all derivatives, shorts, leveraged trades, stock options... (YES !!! options too) all the garbage which has nothing to do with raising capital for growth, just to remind everyone - this si why we have a stock market

     

    Time to find real jobs. help the economy rather than destroy it
    10 Oct 2012, 03:29 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    What is your field of expertise? It must not have anything to do with capitalism and economics.
    10 Oct 2012, 10:49 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Ah, the good old Eurozone...the gift that just keeps on giving.
    10 Oct 2012, 05:51 AM Reply Like
  • Fordman
    , contributor
    Comments (4) | Send Message
     
    By delaying the inevitable over the last 2 years (P, I, G, S) people will start to get a sense of where they are going but they really have no idea how bad things will get.
    11 Oct 2012, 03:47 AM Reply Like
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