The SHOCKING Graph that Proves Portugal is Gaining on Italy in The Economic ‘DOOM LOOP’
- The SHOCKING Graph that Proves Portugal is Gaining on Italy in The Economic ‘DOOM LOOP’
by LANA CLEMENTS, http://www.express.co.uk/
PORTUGAL’S banks are catching up with Italy in terms of the so-called doom loop measure of fragility.
Italian banks have been struggling amid billions of pounds worth of bad loans, but it is also heavily exposed to debt issued by the government. Portugal is rapidly getting itself into a similar position, according to Zerohedge.com. Essentially, weak banks and financially weak governments are dragging each other down in the so-called doom loop.
Portuguese banks have stocked up on government debt over the past two years at speedy rate. And if they continue at the same pace will be in the same position as Italian firms by 2018, found the site. Portugal’s economy is already heavily weighed down by debt at GDP ratio of 129 per cent.
Zerohedge.com predicts a 15 percent fall in government bond prices could wipe out a whopping 35 per cent of Italian bank cash and 22per cent of Spanish bank capita.
No comments yet.