This blog has an over-arching thesis – which is that current account deficit countries are going to have bad banking systems – but current account surplus countries are going to be sort-of-OK.
This post was outlined in the second substantive post on this blog in which I said:
But I was pretty happy with the banks in current account surplus countries – although their profitability was limited.
Well – the facts on the ground look much uglier than that.
Sure the failure in
But my problem is that the banks in current account surplus countries are behaving very badly. The relatively well run
This is significant and signifies either irrational panic or the thesis being wrong.