The re-assertion of national financial interest over EU concerns isn't a surprise to me, though it seems to be a surprise to the Euro-crats and Euro-philes. Via Powerline comes this news link. Blurb on the Germany-versus-EU front:
Germany's Finance Minister Peer Steinbrueck made clear his government's opposition to the idea that the euro zone's single largest economy should put up money to prop up institutions outside his country.He said Monday that he and Chancellor Angela Merkel were considering creating a "shield" that would protect the country's entire financial sector, and that a Europe-wide shield or bailout was out of the question. "The chancellor and I reject a European shield because we as Germans do not want to pay into a big pot where we do not have control and do not know where German money might be used," he said in a separate interview with WDR 2 radio.
Well, that does make sense from a German perspective. Also, the terminology of that last statement ("we do not want to pay into a big pot where we do not have control") is a nearly perfect distillation of why I detest high taxes and goofy Big Government.
3 comments:
The Steinbrueck quote may make sense from a German perspective, but that is different from actually making sense at all. Not a cut at Germans generally, but - his assumption that he and Merkel can just crete a wall around the German border is dead wrong. The water is already leaking through the dikes, the 'emeny' is through the gates.
The German crisis du jour is the Hupo Real Estate bailout. Hypo is having a liquidity crisis originating with an Iris subsidiary which lends money to governments. Problem is that they got the money they lent (long term) from short-term credit markets. Markets which have now dried up for the time being.
Thus Hypo has 50 billion euros in short term obligations coming due and needs the money to pay them - or default and go bankrupt even though they seem to be solvent in the long term.
I wonder how many other such obligtions are out there in other foreign subsidiaries of German banks?
So, no it does not make sense.
"because I am involved in mankind; and therefore never send to know for whom the bell tolls; it tolls for thee"
John Donne
Of course I was looking at it from a German perspective because the quote is by a German.
Anyway, not so long ago I recall the "superior" Eurocrats laughing at the US financial crunch. Who's laughing now? Finances have become interwoven on a vast scale across international lines not only in Europe but around the world. Asian markets are down too.
It's a huge conundrum, Maddie. It's been enough to pitch me out of the GOP, for this election at least. Well - not only this, this was the last straw.
Unlike you I hold my nose and support the bailouts, but they piss me off. Wall Street has been supporting the downsizing of middle American incomes for a decade now, so for them to come back and ask for middle-America to pay for a bailout is.... a little rich. A LOT rich!
I want to see them take a huge haircut and learn some humility, but I also recognize that without a functional banking system I might not be employed. I also want to see some of the designers of this system go to jail - I want to see some 'perp walks'. These CDO's in particular seem to be fraudulent pure and simple.
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