Comments on: The Brazilian banking bet http://blogs.reuters.com/breakingviews/2009/10/07/the-brazilian-banking-bet/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Gaspard http://blogs.reuters.com/breakingviews/2009/10/07/the-brazilian-banking-bet/comment-page-1/#comment-251 Thu, 08 Oct 2009 11:56:51 +0000 http://blogs.reuters.com/columns/?p=572#comment-251 ‘Its ratio of credit to gross domestic product is 50 percent, compared with 169 percent for the United States.’ See graphic:

http://blogs.reuters.com/rolfe-winkler/f iles/2009/09/public-and-private-debt-bur den.jpg

Are your numbers for US correct ?

I just had a thought – are we comparing apples with apples ? Credit/GDP, we are dividing a ‘cumulative position’ by a ‘period result’, i.e. balance sheet/ income statement, should it not be Credit turnover for the year/GDP for the year ?

Anyway.

What would the ideal ratio be then ? 50% credit and 50% cash ? 169% doesn’t sound right, hence the credit crisis.

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