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View Diary: Icelandic bank failures could sink us(UPDATED) (272 comments)

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  •  The numbers are a bit scary (6+ / 0-)

    To a banker, assets are loans.  Deposits are liabilities.  

    The three largest banks in Iceland have "assets" worth ten times the country's GDP.  In seven years they have gone from foreign loans representing 4 percent of GDP to foreign loans representing at least 5 times GDP (and probably closer to ten).  

    Given the interconnectedness of global finance, the situation is at least illustrative.

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