Is Luxemburg the Next Cyprus ?

“……………………….Now to the point of this article; consider the ratio for this European money center:

Luxemburg – External Debt = $2.2T. External debt to GDP = 3,700%

Yes, yes, I know. Luxemburg is different than Cyprus. Luxemburg is just a booking center, there are assets behind all of this debt. But at the same time, this looks like a very unstable situation.

I end with where I started, only an idiot would leave more than E100k in a Luxemburg bank (any EU bank for the foreseeable future). I believe that the deposits that are behind Luxemburg’s external debt are measured in the trillions, the vast majority of those deposits exceed E100k. It would not take much for this situation to slide out of control.”

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