Picture of a 1,000 words: what % of money banks have as % of GDP.

[dixiegrrrrl]

Look at USA compared to other countries.

edited to correct: % of money relative to GDP.....I made a boo-boo, thanks for the correction, Mike.

and apparently when I posted what I thought was the link, the actual chart comes up in the post.

[mike_c]

1. the title of that graphic does not exactly match your OP title...

...unless I'm missing something, which is certainly possible! But I read that as the relationship between the banks' assets and it's home country's gross domestic product, e.g. JP Morgan's assets are equivalent to 15% of U.S. GDP. That's not at all the same as saying that only 15% of their assets are in the U.S. (that's how I read your OP title).

[dixiegrrrrl]

3. Corrections made.

(I could mention the horrific thunderstorm above me and the 80# dog trying to climb in my lap as I found and posted this, but I won't.)
.
:evilgrin:

[mike_c]

5. gawd....

Thunderstorms and dogs. Been there! Hope it all turned out well!

[tortoise1956]

9. I'll see your 80# dog

and raise you a psychotic bassett who has been known to howl for hours after ONE thunderboom...drives the cat crazy!

[haikugal]

2. I don't see a link?

[dixiegrrrrl]

4. the link is from zerohedge

here it is without the .jpg at the end. If I put the jpg at the end, it shows the chart.
I found the chart/page when I was wandering thru a blog, but lost the window I had open to it.


http://www.zerohedge.com/sites/default/files/images/user5/imageroot/madoff/Banks%20As%20%25%20Of%20GDP

[OllieLotte]

6. I'm slow. I don't understand what this is telling me. n/t

[Owlet]

7. It's an illustration

and a very good one showing how world economies have been 'financialized'. Banks don't produce anything: they just move paper around, yet that processis considered to be part of the total goods and services a country produces. Dd I get that right, dixiegrrrrl? Hey, I'm an English major, not an MBA..:D

[Jim__]

8. The chart seems to have implications for possible defaults of European countries.

If I understand the write-up accompanying the chart, if, say, Greece fails and brings down some European banks, then the collapse of those banks could have serious repercussions for European economies.

An excerpt:

With the threat of sovereign default and contagion now pervasive within the Eurozone periphery, it is relevant to quantify the relative exposure of various banking centers' assets as a percentage of host countries' total GDP. The reason for this is that in Europe for many countries a sovereign default would not have as great an impact, as a risk-flaring contagion impacting these countries' primary financial entities, whose assets account in some cases for multiples of host GDP. For example in Switzerland, the assets of the top two banks, UBS and Credit Suisse, alone account for nearly 600% of the country's GDP. And while Switzerland is relatively isolated from the budget and deficit crises in the PIIGS and STUPIDs, other countries such as Italy, Belgium and ultimately France, Germany and the UK, are much more exposed.

...

The chart below demonstrates graphically the ratio between a given bank's asset and the GDP of its host country. Unfortunately for Europe, there is a dramatic concentration of bank assets precisely in some of the most precarious regions. Which is why Germany may have kicked the can down the road for at least a month, but the issue will come back with a vengeance for the simple reason we have noted from the start of this crisis: only Bernanke has a money printer. Everyone else actually has to produce "stuff", sell it and collect taxes if they want to fill catastrophic budget deficits. And the latter, as we have seen, is something the developed world has been horrible at doing over the past decade, courtesy of the Goldman-facilitated innovation explosion.

[cyberpj]

10. I'm wondering how much of that Swiss number is actually Corporate US number. nt