Credit Market Writedowns: The U.S.’s Toxic Export

Something Wall Street has done very successfully in the current crisis is export risk. Through syndication it was able to move a lot of toxic paper around the world, perhaps not as much it wishes it had, but a surprising amount.

Driving that point home is the following figure showing credit-related banking writedowns in the U.S. and Europe. The latter region leads in a big way, which helps explain the current pain being felt in regions otherwise  not connected to the U.S.

credit-markets-worldwide

More here.

Related posts:

  1. Bank of China: Subprime Writedowns 6x Forecast
  2. The Credit Market "Push" Myth
  3. Credit Tightening vs. Credit Crunch
  4. It’s Pimco’s Credit Market. We Just Trade In It.
  5. Fannie and Freddie: Toxic Toys vs. Toxic Paper