Very nice interactive visual guide by NYTimes charting the web of debt exposure among sagging economies, and showing how much each European country owes and to whom.

(NYTimes) “Arrows show imbalances of debt exposure between borrowers in one country and banks in another; arrows point from debtors to their bank creditors.  Arrow widths are proportional to the balance of money owed.  For example, French borrowers owe Italian banks $50.6B; Italian borrowers ower French banks $416.4B.  The difference – their imbalance – shows France’s banking system more exposed to Italian debtors by about $365.8B.”

Full Interactive Chart: It’s All Connected: An Overview of the Euro Crisis (NYTimes)

Great interview on Charlie Rose with Ray Dalio, where they discuss his thoughts on government spending, debt / deleveraging, Occupy Wall Street, Greece, along with how people should objectively come to logical conclusions.  It’s more valuable to know what you don’t know, and if we recognize and worry about being wrong, then we can then have a thoughtful dialog and truly learn and grow.  For example, before politicians propose policies that have no foundation in common sense economics, they should first come together and agree as to how the economy actually “works”.  He also believes Europe will likely employ a combination of printing and writing-down to deal with the Greek debt crisis.

“The great fallacy of all mankind is that people know more than what they do, and it’s a discovery process.  The process for learning is to say I don’t know.” (18 minutes in)

]]> http://www.vlogolution.com/hot/2011-10-21-ray-dalio-interview-on-charlie-rose/feed/ 0