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Deckard

$5.3 Trillion

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http://www.bloomberg.com/apps/news?pid=206...id=aI.TvvSBYXBM

June 12 (Bloomberg) -- European governments have approved $5.3 trillion of aid, more than the annual gross domestic product of Germany, to support banks during the credit crunch, according to a European Union document.

...

Following is a table of European government’s commitments. All figures are in billions of euros and include capital injections, guarantees granted, effective asset relief and liquidity interventions.

United Kingdom 781.2

Denmark 593.9

Germany 554.2

Ireland 384.5

France 350.1

Belgium 264.5

Netherlands 246.1

Austria 165

Sweden 142

Spain 130

The UK tops the table - however things look quite different once you take into account relative GDP sizes.

Ireland's problems have been discussed at lenght on this forum, but can someone please explain how Denmark (GDP around 1/10 the size of UK) managed to rack up that type of bank leverage / toxic loan exposure??? :blink:

And wouldn't it be fair to say that Austria needs to set aside A LOT MORE in view of their massive exposure to Eastern Europe? :ph34r:

Discuss...

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It's only numbers. They don't bite.

they do! They got too many zeros.

average house price is 150k? number of mortgages is 10M?

(is 1.1M mortgage are in NEq. and thats about 10% of total?)

then cost of paying off all mortgages in Uk is

150kx10M

= 1500M?

and how much is that out of the United Kingdom 781.2bn?

(nice charts http://www.mortgages.co.uk/mortgage-trends/index.html )

Edited by SarahBell

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Average house price is 150k? number of mortgages is 10M?

(is 1.1M mortgage are in NEq. and thats about 10% of total?)

then cost of paying off all mortgages in Uk is

150kx10M

= 1500M?

and how much is that out of the United Kingdom 781.2bn?

You've missed a few zero there:

150kx10M

= 1500KM

or easier to read:

150,000x10m = 1,500,000m

or

1,500 billion

or

1.5 trillion

Or twice what the UK has spent on bailouts so far. :blink:

So in fact, it's excelent value for money :rolleyes:

Edited by TaxAbuserOfTheWeek

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http://www.bloomberg.com/apps/news?pid=206...id=aI.TvvSBYXBM

The UK tops the table - however things look quite different once you take into account relative GDP sizes.

Ireland's problems have been discussed at lenght on this forum, but can someone please explain how Denmark (GDP around 1/10 the size of UK) managed to rack up that type of bank leverage / toxic loan exposure??? :blink:

And wouldn't it be fair to say that Austria needs to set aside A LOT MORE in view of their massive exposure to Eastern Europe? :ph34r:

Discuss...

In a word. Latvia

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You've missed a few zero there:

150kx10M

= 1500KM

or easier to read:

150,000x10m = 1,500,000m

or

1,500 billion

or

1.5 trillion

Or twice what the UK has spent on bailouts so far. :blink:

So in fact, it's excelent value for money :rolleyes:

Ah but considering only 10-20% would default in the WORST case scenario (ie. subprime)

Its actually seems appauling value. :angry:

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http://www.bloomberg.com/apps/news?pid=206...id=aI.TvvSBYXBM

The UK tops the table - however things look quite different once you take into account relative GDP sizes.

Ireland's problems have been discussed at lenght on this forum, but can someone please explain how Denmark (GDP around 1/10 the size of UK) managed to rack up that type of bank leverage / toxic loan exposure??? :blink:

And wouldn't it be fair to say that Austria needs to set aside A LOT MORE in view of their massive exposure to Eastern Europe? :ph34r:

Discuss...

United Kingdom 781.2 41%

Denmark 593.9 243%

Germany 554.2 21%

Ireland 384.5 197%

France 350.1 17%

Belgium 264.5 73%

Netherlands 246.1 40%

Austria 165 56%

Sweden 142 41%

Spain 130 11%

rough conversion to percentage of gdp.

Ireland and denmark amounts as % of gdp are crazy.

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The money has not been spent either. Less than £50 billion has been used to buy shares and recapitalise RBS and Lloyds TSB. The majority of the sum quoted is money earmarked for APS, which may never be used and I presume the funds in the special liquidity scheme which are short term loans.

As the financial system did not totally collapse it is possible that the bank bailouts will be profitable in a year or two and have involved no net expenditure of funds over that period of time especially if the APS is not drawn upon.

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The money has not been spent either. Less than £50 billion has been used to buy shares and recapitalise RBS and Lloyds TSB. The majority of the sum quoted is money earmarked for APS, which may never be used and I presume the funds in the special liquidity scheme which are short term loans.

As the financial system did not totally collapse it is possible that the bank bailouts will be profitable in a year or two and have involved no net expenditure of funds over that period of time especially if the APS is not drawn upon.

Good job asset prices aren't falling, job losses mounting and more defaults occuring.

It won't cost a penny and the taxpayer will make a profit, more so since we are in the first throws of the recovery.

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Denmark 'most dynamic EU economy' from Dec 06

http://news.bbc.co.uk/1/hi/business/6174573.stm

-

Denmark economy 2008

IMF Mission has made some interesting observations regarding performance of Denmark's economy on October 2008. According to IMF, strong initial conditions, solid institutions and sound policies have placed Denmark in a better position to effectively cope with adverse effects of current global financial crisis. Maintenance of fiscal sustainability and containment of adverse spillover effects were deemed requisite policy priorities. Since Danish banks have minor exposures to subprime assets in US, direct effect of US global meltdown has been minimal here. Problems have stemmed from resultant risk aversion behavior and liquidity dry up. Temporary liquidity facilities currently extended by Danmarks Nationalbank have been fruitful in this respect.

http://www.economywatch.com/world_economy/denmark/

-

OECD Economic survey of Denmark 2008

http://www.oecd.org/document/27/0,3343,en_...1_1_1_1,00.html

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So how much would it have cost to just pay off every mortgage in the UK?

I've wondered that too, the 5.3 trillion seems as if it could almost do just that

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You've missed a few zero there:

150kx10M

= 1500KM

or easier to read:

150,000x10m = 1,500,000m

or

1,500 billion

or

1.5 trillion

Or twice what the UK has spent on bailouts so far. :blink:

So in fact, it's excelent value for money :rolleyes:

See! I told you I couldn't do numbers!

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United Kingdom 781.2 41%

Denmark 593.9 243%

Germany 554.2 21%

Ireland 384.5 197%

France 350.1 17%

Belgium 264.5 73%

Netherlands 246.1 40%

Austria 165 56%

Sweden 142 41%

Spain 130 11%

rough conversion to percentage of gdp.

Ireland and denmark amounts as % of gdp are crazy.

Thanks for that, can I ask where you got the GDP figures from?

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Denmark 'most dynamic EU economy' from Dec 06

http://news.bbc.co.uk/1/hi/business/6174573.stm

-

Denmark economy 2008

IMF Mission has made some interesting observations regarding performance of Denmark's economy on October 2008. According to IMF, strong initial conditions, solid institutions and sound policies have placed Denmark in a better position to effectively cope with adverse effects of current global financial crisis. Maintenance of fiscal sustainability and containment of adverse spillover effects were deemed requisite policy priorities. Since Danish banks have minor exposures to subprime assets in US, direct effect of US global meltdown has been minimal here. Problems have stemmed from resultant risk aversion behavior and liquidity dry up. Temporary liquidity facilities currently extended by Danmarks Nationalbank have been fruitful in this respect.

http://www.economywatch.com/world_economy/denmark/

-

OECD Economic survey of Denmark 2008

http://www.oecd.org/document/27/0,3343,en_...1_1_1_1,00.html

:blink::blink::blink:

Dynamic indeed <_<

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Without bailing out the banks, the (bank) deposits are worthless. They are backed by loans that will never get paid back. The Government are now taking them (the worthless loans) onto their books.

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Careful what you invest in. The debts will never be repaid unless the currency becomes near worthless. The growth needed to keep the debt money system expanding can't be achieved with limited resources. The entire field of mainstream economics is suffering collective paradigm failure.

Edited by sikejsudjek

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