Monday, February 8, 2010


Not as a risk per se, but when capital is being removed from Western European banks, you have to wonder what entity(ies) are making the runs on the bank. The Oligarchs have to be wondering how solvent their western partners really are at a time when even the mighty Bund is suffering from CDS spread widening.

Capital from energy rich countries has historically been much more volatile, as those countries are inevitably run in a more autocratic manner (for whatever reason; the curse of oil, geography, etc.) and are thus much less stable than Western-style democracies.

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