Germany Holds Firm in Euro Storm
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  • Alex Hertz

    This drama will never end as the politicians in the EU are not focused on the real problem, which has been the same problem here and is not still being addressed. Everyone speaks about the confidence of the markets as the issue. The issue is not liquidity, the world is swimming in it, it is solvency and the trillions in Euro debt will only be resolved in either default or debasement of the currency. There is no other way out. The same applies to the US and as the professor is correct in the death of the blue model, it will not go out with a whimper, but in a Keynesian Super Nova, putting an end to this silly post-modern era we live in.

  • WigWag

    “Europe is stuck. While a German bailout appears increasingly necessary to keep the European economy intact, Germans have been understandably hostile to the proposition that their hard earned, hard saved money should be used to bail out the spendthrift Greeks and Italians. (Actually, a lot of it will go to bail out spendthrift German bankers, but don’t tell the Germans that: it would only confuse them.)” (Walter Russell Mead)

    Which of course means that the Germans will be bailing themselves out as depositors. If German banks teeter as a result of holding too much debt at risk of default, it’s those thrifty German savers who risk seeing their savings go up in smoke.

    Of course, the likelihood that Germany would ever allow any of its banks to fail is almost nonexistent which means that if the German banks weaken, Germans will pay as taxpayers to bail the banks out.

    Either way, the Germans are screwed; they end up paying either as depositors or as taxpayers.

    Maybe it’s just a little bit of Karma for the Germans; what goes around, comes around.

  • Ken Marks

    This sentence caught my eye: “Chancellor Merkel on the whole is doing the only thing possible: holding on tight between the devil of German public opinion and storm whipping the deep blue sea of European financial markets into a foam-flecked flood.” Whoa! I tried counting the mixed metaphors in this statement but stopped because I can’t count that high. If I were giving it a grade in a middle school writing class I might go with a C+.
    But the article was good, nonetheless.

  • Kris
  • joe the Hun

    ^-what goes around, comes around=….
    maybe the confused germans should turn eastward and make friends with Russia, at least there is oil instead of goat cheese and olives…

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