Friday, September 09, 2011

Germany to "Help"

Chancellor Angela Merkel’s government is preparing plans to shore up German banks in the event that Greece fails to meet the terms of its aid package and defaults, three coalition officials said.
So, A loans money to B, and B defaults. The Big Bank makes A whole. Now A can loan more money to B, and presumably even to C and D, without fear of "failing."

And so another episode in the continuing saga of This is the "Greenspan Put" begins. If there were truth in advertising, however, it would be called "The Taxpayer Put."

You read it here first.


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