All PIIGS Are Equal, but Some Are More Equal Than Others

FX Outlook
June 22, 2010 Posted by:
Posted by Remy Hathaway, June 22, 2010 at 5:46 PM
"I don't entirely understand the usefulness of debt-to-GDP as a metric. It's the interest expense that matters (along with the average life of the outstanding debt). If I borrow to buy a house, will SVB look at the ratio of my income to the home value? Or is it more likely they'd look at debt service to income? Interest expense to GDP strikes me as a much more relevant measure as to just how much of a burden the debt really is."


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