The German Bailout

HenryTo · Posted: Sun Oct 05, 2008 11:11 am Post subject: The German Bailout

Germany capitulates with Hypo Real Estate on the edge. Follows the Irish and Greek "model" - although it is covering retail deposits only:

http://www.ft.com/cms/s/0/d895ef54-92ef-11dd-98b5-0000779fd18c.html

HenryTo · Posted: Tue Jan 06, 2009 1:14 am Post subject:

Germany effectively doubles its two-year fiscal stimulus program. Now at €50 billion, or 1.5% of GDP:

http://www.ft.com/cms/s/0/62b17886-db23-11dd-be53-000077b07658.html

HenryTo · Posted: Tue Dec 09, 2008 7:08 pm Post subject:

Pressure grows on Merkel to act. The Bundesbank is forecasting the Germany economy to shrink by 0.8% next year - but given the crash in central and eastern europe (a significant market for their exports), the plight of various German banks, and a dismal consumer culture, I would be surprised if this isn't revised down before the end of this year:

http://online.wsj.com/article/SB122886081760392607.html

HenryTo · Posted: Mon Dec 08, 2008 2:47 pm Post subject:

Unfortunately, no one is going to be immune from this. As we all like to say, be careful what you wish for.

rffrydr · Posted: Mon Dec 08, 2008 10:16 am Post subject:

The Germans are a very "recht" people: as much as they believe in macro power, the long view and hard money--they also believe in punshment.
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HenryTo · Posted: Sun Dec 07, 2008 2:20 am Post subject:

Germany passes a woefully inadequate €31 billion two-year stimulus program. Given Germany's budget and trade surpluses, and given that the rest of Europe is too fiscally weak to implement further stimulus packages, Germany definitely needs to do more for the region (not just the Euro Zone but for central and eastern Europe as well):

http://online.wsj.com/article/SB122852897790084817.html

pinocchio · Newbie Joined: 20 Mar 2008 Posts: 18 Location: Switzerland

I still have problems to understand the whole mess. Right now, I see it like that:

Paulsen said: We have those drug dealers who have a lot of bad loans/debts, so we buy those loans/debts, and everything will be good again.

And the markets crashed.

The EU/G7/G20 etc. seem to say: We have those drug dealers who have a lot of bad loans etc., so we have to put those bastards under guardianship, and we will nationalize their business if necessary (the swedish model), and everything will be good again.

Does that work as a summary? Somebody enlighten me, please.

HenryTo · Posted: Sat Oct 11, 2008 8:53 pm Post subject:

German bailout details emerge:

http://online.wsj.com/article/SB122375258121026119.html

HenryTo · Posted: Sun Oct 05, 2008 4:23 pm Post subject:

Hypo Real Estate is bailed out - for the second time in as many weeks:

http://www.bloomberg.com/apps/news?pid=20601087&sid=atXGCoKSlghE&refer=home