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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
by 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 agoExactly 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...