Tuesday, 12 March 2002

NEVER A LENDER BE !

Here are ”Sovereign debt as a percentage of GDP “figures for various countries, as provided by Times of India (July 15,2011):

  • Japan   ………………….  220  %

  • Greece   ………………..  142  %

  • Italy   …………………….. 119  %

  • Russia   ………………….. 99   %

  • Ireland   …………………  96.1 %

  • USA  ………………………… 91.6 %

  • France  …………………….. 84.3 %

  • Canada  ……………………  84  %

  • Portugal  …………………… 83.3 %

  • Germany  …………………  80  %

  • UK  ……………………………. 77.2 %

  • India  ……………………….. 69.2  %

  • Brazil   …………………………66.1  %

  • Spain  ………………………….60.1 %

  • Taiwan  ……………………… 39.7  %

  • S.Korea  ………………………30.9 %

  • S.Africa ……………………….35.7 %

  • China  ……………………….  17.7  %

Greece just managed to avoid a default of re-payments to its private creditors by getting them to ” agree “ to write-off  59 % of the debt !

Greece might have escaped going bankrupt by the skin of its teeth

Question is :

Will others be equally lucky ? Will the world see a financial meltdown ?  Or , is it only a question of when ?

Lenders , beware ! By lending recklessly ,you have become, the enemy # 1

With regards


HEMEN  PAREKH