Wednesday, May 4, 2011

German Public Opinion and Bailouts. What about the True Finns?

I find it very interesting that the Germans seem so animated against bailouts of Greece et al when it seems that their second tier banks (the Landesbanks) probably stand to lose the most from a restructuring of debt. If the banks take catastrophic losses on their debt positions the Germans will still be on the hook for a bailout. Just this time for the bad decisions of their domestic bankers. The real question for Finland is not just do you want to bail out the Greeks, its by extension do you want to participate in the bailout if the ultimate beneficiaries are German banks that have been shown to be perpetual victims of bad investment choices?

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