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Because german banks have been benefiting from the usurious interest rates being charged to the southern european countries. If Greece defaults several german b
by arijo 15y ago
Because german banks have been benefiting from the usurious interest rates being charged to the southern european countries. If Greece defaults several german banks go bankrupt.
- shithead 15y agoBanksters have played it like drug dealers: "Have a loan" . "Buy our stuff" . "Interest rate is now 30%" . "Tut-tut, we have to call Bruno" .
- mrich 15y agoTrue, but what sane bank would take on the risk (=higher interest) without knowing that it is worth it? So I assume there was some background deal, an assumption that governments will cover for defaults.
- arijo 15y ago"Bankruptcy of Lehman Brothers" - http://en.wikipedia.org/wiki/Bankruptcy_of_Lehman_Brothers http://en.wikipedia.org/wiki/Bankruptcy_of_Lehman_Brothers
- bd_at_rivenhill 15y agoThe banks take this risk not just because they expect that there will be a bailout but also because the Basel Accords allow them to treat sovereign bonds as riskless when calculating their Capital Adequacy Ratio, making those bonds look like a better deal relative to other bonds of equal risk.