If you’re trying to get your head around the huge problems facing the global banking system, probably the most sensible advice is don’t bother...stay happy!
However, if you really want to know there’s an interesting piece from Robert Peston on the BBC today, who writes about why “encumbrance” and “forbearance” are crippling banks and the economy.
Forbearance is when creditors relax their normal lending criteria and conditions, so that their debtors don't go bust.
In the commercial property market, he says the lending terms on some £50bn of troubled loans have been waived so far.
Anyway, the headline, or the bottom line, is apparently:
“...the fundamental problem of the eurozone banking system is that it is seriously insolvent in parts. And until the requisite capital is raised, the eurozone will continue to live dangerously on the brink of potential catastrophe.”
Told you not to bother!