“Greece has to pay 2.5 percentage points more interest than Germany. “
By Daniel at 16 December, 2009, 10:05 pm
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
And right there is the problem. Mr SmartyPants at UniCredit thinks the EU will be just fine, because “They are going to support countries like Greece and Ireland.”
“Support countries like Greece and Ireland” means that Germany will have to shell out mucho Euros to bail Greece out of their fiscal stupidity, which means that in the end it is Germany that pays the extra risk spread on Greece’s bonds.
There’s a reason why Germany has never laid the Deutschemark fully to rest. They know they may have to resurrect it to have a viable currency, if countries like Spain and Greece and Ireland continue to live like irresponsible trailer trash, aka the United States of Squanderville.
- woodsmoke
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
Related Posts:
Categories :
Market Outlook
No comments yet.