4 ms·
Given that it's not entirely one-way why can't it be partially cancelled out? Sure it wouldn't go the distance but why is that step not made?
by forrestthewoods 15y ago
Given that it's not entirely one-way why can't it be partially cancelled out? Sure it wouldn't go the distance but why is that step not made?
- waitwhat 15y agoThe hand-wavey text in the top-left explains that "Banks and governments in these five shaky economies owe each other many billions of euros." So while it does look like "Greece owes Ireland $8.5bn" is at least partially cancelled out by "Ireland owes Greece $0.8bn", I would expect that these statements roughly translate to "The Greek government owes various Irish banks $8.5bn" and "The Irish government owes various Greek banks $0.8bn", which unfortunately don't cancel each other out.
- ianpurton 15y agoThe debts are probably government bonds with different maturities and interest payments being held by different banks. I'm not sure where the information from this diagram comes from because I didn't think a banks exposure to different countries was public knowledge.
- justincormack 15y agoThat data was released as part of the European bank stability tests. You can get the spreadsheets here http://www.eba.europa.eu/EU-wide-stress-testing/2011/2011-EU-wide-stress-test-results.aspx http://www.eba.europa.eu/EU-wide-stress-testing/2011/2011-EU... Historically it was not available.