Time to hit the panic button

Posted on 30/01/2009 by Stephen

Bank liabilities, as a percentage of GDP, are 800%. OMFG.

I should stress, that these are estimated bank liabilities. It could be worse, it could be better.

Panic Stations, folks.

Panic Stations, folks.

Which do you reckon it might be?

6 thoughts on “Time to hit the panic button”

Dan Sullivan on 30/01/2009 at 10:01 pm said:

HFG
Tullaman on 01/02/2009 at 10:21 pm said:

Calm down! Actual figure is 368% not 800%.

http://ftalphaville.ft.com/blog/2009/01/30/51895/spot-the-odd-one-out/

Corrected version here
http://alphaville.ftdata.co.uk/lib/inc/getfile/4398.jpg

Maybe got Ireland mixed up with Iceland.
- stephenkinsella on 02/02/2009 at 9:24 am said:
  
  Thanks, this actually doesn't make me feel much better, but at least it's closer to 100%...
Fergus O'Rourke on 02/02/2009 at 12:12 pm said:

Remembering that bank liabilities are what they owe to depositors, bondholders etc, the estimate is unlikely to differ much from the actual figure. It will not be increased by, for example, writing down the loan portfolio.
- stephenkinsella on 03/02/2009 at 9:21 pm said:
  
  True, but what might happen if, say, 3 banks were nationalised, and bad debts went to 50/60% of loans to book?