CHART: Here's The Massive Deleveraging Of European Banks
Nov 5, 2013, 15:44 IST
From Morgan Stanley, a chart of the massive deleveraging still underway by European banks.
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Due to the weak economy and demands of improving capital ratios, European banks are shedding assets aggressively.
This asset dumping, especially the dumping of foreign assets, tends to be Euro-bullish.
Thus this chart represents a pattern similar to the great decline in Japan, where ongoing deleveraging was accompanied by burdensome yen strength.
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