Thanks Frank. Interesting read but I think the article fundamentally underestimates Saudi Arabia's foreign exchange reserves which are still a whopping $650bn or thereabouts (after a $100bn hit defending market share). It also misses the point completely about illiquidity of European banks. Nothing to do with energy exposures (and the U.S. banks incidentally have the largest exposures at no more than a modest 3% of their loan book according to GS which is entirely manageable after balance sheets were cleaned up post GFC). No, European bank liquidity could again become ugly as the next article makes clear
And if that isn't enough to be concerned about, the following article paints a gloomy picture of the damage being inflicted on OPEC and non OPEC participants.
