Finance

Bank Deposits Flow Into Germany

For almost a decade, from 2002 to 2010, the change in bank deposits in Germany was highly correlated with the change in bank deposits in some of Europe's smaller, weaker economies — Portugal, Ireland, Greece, and Spain (PIGS). If deposits in Germany went up, so did the deposits in PIGS. If they went down, the same.

But over the last year, not surprisingly, that changed. The graphic above from the Center for Geoeconomic Studies shows exactly how much Germany's bank deposits have increased as deposits in its neighbors banks have fallen.

The future, however, might not be smooth sailing for German banks. Bloomberg reports that in a conference call this week, German banks talked about potential losses of 50 to 60 percent losses from Greek debt.

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