European Tribune - Comments - Europe.Is.Doomed!

Europe.Is.Doomed! | 20 comments (20 topical, editorial, 0 hidden)

I believe more or less the only thing rotten in Germany are the banks. This is not necessary a big problem. Their domestic markets are fine. It becomes problem only if government puts these debts on to tax payers. It is a political, not an economic problem.

by kjr63 on Wed Jul 1st, 2009 at 04:40:33 AM EST

indeed (4.00 / 8)

and the only reason for that is that the EU forced the deregulation of the Landesbanks to cut off their source of cheap funding. With suddenly higher borrowing costs, they needed to invest in activities with higher remunerations, and they jumped massively into the markets for "structured products"

Dumb, dumb, dumb.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Jul 1st, 2009 at 05:51:44 AM EST
[ Parent ]

Europe.Is.Doomed! | 20 comments (20 topical, 0 editorial, 0 hidden)

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