[Slide 7: Public debt held by domestic banks in % of Total Assets] The points I just made seem to run counter to the idea that the macro imbalances in peripheral countries was mostly driven by the public sector. As seen in the charts, with the possible exception of Greece, that seems not to have been the case.
I will show in a moment that the imbalances came mostly from the private sector expenditure behaviour laxly financed by the financial sector.