Monday, March 16, 2009

Why European Banks are in Trouble...

The chart below shows the size of global capital markets in relation to the GDP leading up to the crisis. What's clear is that bank assets were a much greater percent of GDP in the EU than in the United States, explaining (along with currency issues) why the EU has been hit especially hard.

On the bright side... the U.S. is in "relatively" good shape.

Source: IMF