European Financial Contagion

Neil Irwin and Washington Post graphic designers Wilson Andrews and Alicia Parlapiano provided an excellent rundown of the crisis in European sovereign debt. The image at left is a representation of their interactive graphic showing vulnerability in banking and trade as a percentage of gross domestic product. The line thickness represents how much is at stake, and when you mouse over a single country its connecting lines become the only ones visible.

Irwin explains that the contagion effect spreads “when investors see one country encounter financial problems” and then “doubt the health of other countries that seem to share economic or even political characteristics.”

It also has “much to do with actual economic links among countries. Researchers have identified financial ties in particular as responsible for the ‘fast and furious’ spread of crisis from one country to another. Trading activity between countries, however, can propagate economic sickness more slowly.”

Worth a visit.

This entry was posted in Sovereign Debt. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • Here are your three options:

    Option 1: Annual Subscription (no refunds)

    For just $200 per year, you’ll receive everything listed above to completely upgrade the way you manage your investments. This is 17% cheaper than the monthly option. This is what I recommend:

    Option 2:Monthly Subscription (no refunds)

    If you'd like to try The Kelly Letter  without paying the full year, you can pay $20 per month.

    Option 3:Free Email List

    If you'd like to hear more from me but aren't ready to part with any money yet, you're welcome to join my free email list:

    Join the free list

    Thank you for the work you do. You're a household name here and my wife and I often discuss your letters on Sundays. My ten- and seven-year-old children recognize your name and will eventually be taught to invest using 3Sig and 6Sig. You've had an enormously positive impact on our investing and inspired me to look at the world in more rational and clear terms than I did years ago. I'm sure that thousands of others would say the same. Kelly Letter subscriber Matt Barnes
    Matt Barnes
    Product Line Director

    Join Matt and thousands of other rational investors to invest without stress.

    Subscribe to The Kelly Letter  now!

Bestselling Financial Author