Insights for Navigating an Uncertain World
“’For banks headquartered outside the United States, dollar debt from these instruments is estimated at $39 trillion, more than double their on-balance sheet dollar debt and more than 10 times their capital.’ Their on-balance sheet dollar debt is $15 trillion. This is reminiscent of Goldman Sachs engaging in derivative trades with Greece to hide its mountain of debt prior to it blowing up.”
Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times. View more posts