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bpw

International Exposure To Eastern Europe

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The general view here seems to be that the Eurozone is the only lender to Hungary and other troubled states. I wonder if this is true - how much for example do the USA and UK have invested in the Eastern Block.

For that matter what would be really interesting is an lending flow map of the globe.

The good thing for Europhiles is the UKs hubris is now out in the open and we can see how claims that the UKs huge exteranal debts are backed by the likes of Dubai world.

Can someone point us to the facts.

thanks

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yeah - but who lent all the money to California and Florida - and why aren't the same questions being asked of states the USA in this context?

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There was a lot of coverage at the time, remember Eastern Europe blew up first, very shortly after Lehman, the IMF was in Hungary and I think Ukraine in not time at all. Then Latvia et al did the austerity thing big time.

From memory. The lending to Eastern Europe was as follows. The Baltic states - Sweden, there was a lot of talk at the time that Sweden would have to bail out its banks and this was residential mortgage lending. Germany was big in Russia and the region as a whole. Austria was Hungary and Romania and the Austrian banks had lent 83% of Austrian GDP (crazy). Then Italy was big in the southern Eastern Europe.

The UK and US banks have very little lending to EE (the UK virtually zero) it was not seen as a sphere of political influence for the countries politicians so the banks did not lend there in return for favours.

Here is a link which has lots of other links into to the individual situations.

http://fistfulofeuros.net/afoe/economics-and-demography/austrian-banks-the-most-exposed-to-eastern-europe-forex-lending/

Also just for your info a lot of British lending went to the middle east, far east and India (UK i the largest external lender to India)

Edited by ralphmalph

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There was a lot of coverage at the time, remember Eastern Europe blew up first, very shortly after Lehman, the IMF was in Hungary and I think Ukraine in not time at all. Then Latvia et al did the austerity thing big time.

So, is Poland still part of Eastern Europe? :rolleyes:

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So, is Poland still part of Eastern Europe? :rolleyes:

No because when I was doing business there about 10 years ago all the Poles told me Eastern Europe was no more they were Central Europe now.

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No because when I was doing business there about 10 years ago all the Poles told me Eastern Europe was no more they were Central Europe now.

well guessed - that was exactly my point! <_<

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yeah - but who lent all the money to California and Florida - and why aren't the same questions being asked of states the USA in this context?

Smoke and mirrors.

No one is asking those questions because everyone is asking about Europe, the Americans are hoping no one realises.

You of course will be rounded up and dispatched immediately as a threat to world peace for talking utter nonsense.... :P

Edited by interestrateripoff

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The general view here seems to be that the Eurozone is the only lender to Hungary and other troubled states. I wonder if this is true - how much for example do the USA and UK have invested in the Eastern Block.

For that matter what would be really interesting is an lending flow map of the globe. The good thing for Europhiles is the UKs hubris is now out in the open and we can see how claims that the UKs huge exteranal debts are backed by the likes of Dubai world.

Can someone point us to the facts.

thanks

The world has been waiting for this 'map' for years. The fact is that govts and the markets do not actually know the truth about it. If countries lie about their finances, what do you think banks on the ropes do? It is a giant web of deceit and triple dealing. The lack of transparency is contributing to volatilty in world markets. If it was a pretty picture it would be published!

Edited by plummet expert

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The world has been waiting for this 'map' for years. The fact is that govts and the markets do not actually know the truth about it. If countries lie about their finances, what do you think banks on the ropes do? It is a giant web of deceit and triple dealing. The lack of transparency is contributing to volatilty in world markets. If it was a pretty picture it would be published!

its basically LLoyds retrocession taken to extremes never seen before in History on a global scale. I wish i was born in 10 years time, the world is gonna be a fcked up place for many a year, a global economic collapse is probably not an ideal time to be in your prime earning years

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I found this information, but its very hard for a layman to really grasp what the numbers mean

http://www.bis.org/s...s/bankstats.htm

The point that does stand out is the UKs vast external liabiliites. Can someone tell me conceptually how these numbers are derived. I presume this is money lent to UK banks who fractionally reserve and then lend it out. It's startling to see the UK has nearly twice the debts of the USA. If those debts tank then where does liability stop? I presume this would degrade the capital ratios turning the UK into a zombie banking centre.

The world has been waiting for this 'map' for years. The fact is that govts and the markets do not actually know the truth about it. If countries lie about their finances, what do you think banks on the ropes do? It is a giant web of deceit and triple dealing. The lack of transparency is contributing to volatilty in world markets. If it was a pretty picture it would be published!

Edited by bpw

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  • 189 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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