sovereign debt is the tipping point

Sovereign debts are minimal compared to the overhang of dodgy debts from 2008 still on major banks books.

Soveiegn debt is the tipping point and a distraction to the real problem:

WE ARE STILL IN A GFC.

"RBS, for example, still has €79.6 billion of assets overhanging, when its sovereign debt positions in struggling Eurozone countries are 'only' €10.4 billion."


"HSBC still has €54.3 billion in credit market pre-2008 assets on its books, and 'only' £14.6 billion in eurozone dodgy sovereign debt."

"Deutsche Bank has €51.9 billion in 2008 dodgy debt and just €12.8 billion in current sovereign euro-debt."


Article:
http://blogs.birminghampost.net/business/2011/11/private-sector-zombie-debts-a.html


The debt has not been liquidated and is like a cancer slowly killing the patient till one day the patient cannot be kept alive anymore.