Home > debt, Politics and the economy > Debt: Where did it come from? (chart of the day)

Debt: Where did it come from? (chart of the day)

from David Ruccio

As the BBC explains,

There was a big build-up of debts in Spain and Italy before 2008, but it had nothing to do with governments. Instead it was the private sector – companies and mortgage borrowers – who were taking out loans. Interest rates had fallen to unprecedented lows in southern European countries when they joined the euro. And that encouraged a debt-fuelled boom.

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  1. February 21, 2012 at 12:31 pm | #1

    Every 6 months, without fail, somebody makes this chart. And every 6 months, it is wrong, because of all the interbank trading taking place in Ireland, the transfer pricing taking place in Ireland, and the general presence of multinationals. These numbers are not to be trusted in any sense.

    • February 22, 2012 at 10:43 am | #2

      Ireland…? What’s that got to do with this graph? Explain further.

  2. Mike Hall
    March 3, 2012 at 2:34 pm | #3

    @ stephenkinsella

    Take a look at the bottom of the graph. What part of ‘non-financial sector debts…’ do you not understand?

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