3 ms·

Germany, imho, is doing whatever it can to avoid to put money in a failing institution because they promoted so much the "be responsible, no buyouts" in the who

by yulaow 10y ago

Germany, imho, is doing whatever it can to avoid to put money in a failing institution because they promoted so much the "be responsible, no buyouts" in the whole EU area. Now that they are in trouble if they go for a buyout there will be _a_lot_ of states who will ask to definitely stop all the austerity measures they so hard promoted [and that, honestly, never worked for any south-west country in EU, they just worsen the situation].

hvidgaard 10y ago
It will not be allowed to fail. Period. It would send EU and probably the world into yet another financial crisis. They're likely to keep it floating, take control of it, and demand that it is split into smaller pieces. Anything else would be completely irresponsible, especially if it's because of pride.
- dogma1138 10y ago
  It would send the EU into turmoil, DB is not alone http://ei.marketwatch.com//Multimedia/2016/09/28/Photos/NS/MW-EW741_wolfst_20160928053102_NS.jpg http://ei.marketwatch.com//Multimedia/2016/09/28/Photos/NS/M...
  - kbart 10y ago
    Can you explain this picture? What do these percentages mean?
- Oletros 10y ago
  > Anything else would be completely irresponsible, especially if it's because of pride. They didn't have that problem when it happened in other countries
atmosx 10y ago
No. That was the case for Greeks and PIIGS in general. The Greek bailout, was an indirect bailout of Franco-German banks[1]. Ms Merkel was not able to ask for a second bailout, so she masked the bailout as a solidarity towards Greeks. Of course Greece's public debt sky-rocketed (from 120% of the GDP to 180% in 6 years) but the worst part was the total disintegration of the Greek economy. Since, throwing money in failed banks never works, we're back in square one. Oh, in the process she also destroyed the Eurozone, but that's just a side effect. [1] http://www.keeptalkinggreece.com/2016/05/04/german-esmt-study-5-of-bailout-money-went-to-greeces-state-people-95-went-to-european-banks/ http://www.keeptalkinggreece.com/2016/05/04/german-esmt-stud...
- jbmorgado 10y ago
  Exactly this. We already saved DB in 2010, and by we, I mean, southern Europe and Irish taxpayers. It's well documented that the bulk of the debt contracted by southern European and Irish governments ended up mainly in DB and to a lesser part in the Bank of Scotland backed by the money of German taxpayers. It's no wonder that Schauble was pressing so hard 2 years ago for a big part of Greek Assets to be held abroad as guarantee the debt payments would be made... where? In DB non the less.
- mathiasrw 10y ago
  > The Greek bailout, was an indirect bailout of Franco-German banks It truely was. German banks (and DB) was main creditors and could not afford Greece to default. They borrowed low interest money at ECB (0.5-2%), spend it on high paying greek bonds with interest between 10-15% - but could not deal with the risk...

by yulaow 10y ago

hvidgaard 10y ago

It will not be allowed to fail. Period. It would send EU and probably the world into yet another financial crisis. They're likely to keep it floating, take control of it, and demand that it is split into smaller pieces. Anything else would be completely irresponsible, especially if it's because of pride.

dogma1138 10y ago
It would send the EU into turmoil, DB is not alone http://ei.marketwatch.com//Multimedia/2016/09/28/Photos/NS/MW-EW741_wolfst_20160928053102_NS.jpg http://ei.marketwatch.com//Multimedia/2016/09/28/Photos/NS/M...
- kbart 10y ago
  Can you explain this picture? What do these percentages mean?
Oletros 10y ago
> Anything else would be completely irresponsible, especially if it's because of pride. They didn't have that problem when it happened in other countries

atmosx 10y ago

No. That was the case for Greeks and PIIGS in general. The Greek bailout, was an indirect bailout of Franco-German banks[1]. Ms Merkel was not able to ask for a second bailout, so she masked the bailout as a solidarity towards Greeks. Of course Greece's public debt sky-rocketed (from 120% of the GDP to 180% in 6 years) but the worst part was the total disintegration of the Greek economy. Since, throwing money in failed banks never works, we're back in square one. Oh, in the process she also destroyed the Eurozone, but that's just a side effect. [1] http://www.keeptalkinggreece.com/2016/05/04/german-esmt-study-5-of-bailout-money-went-to-greeces-state-people-95-went-to-european-banks/ http://www.keeptalkinggreece.com/2016/05/04/german-esmt-stud...

jbmorgado 10y ago
Exactly this. We already saved DB in 2010, and by we, I mean, southern Europe and Irish taxpayers. It's well documented that the bulk of the debt contracted by southern European and Irish governments ended up mainly in DB and to a lesser part in the Bank of Scotland backed by the money of German taxpayers. It's no wonder that Schauble was pressing so hard 2 years ago for a big part of Greek Assets to be held abroad as guarantee the debt payments would be made... where? In DB non the less.
mathiasrw 10y ago
> The Greek bailout, was an indirect bailout of Franco-German banks It truely was. German banks (and DB) was main creditors and could not afford Greece to default. They borrowed low interest money at ECB (0.5-2%), spend it on high paying greek bonds with interest between 10-15% - but could not deal with the risk...