Quote:
Originally Posted by faxxaff
Germany is just doing what the USA has been doing for 2 years, it's called quatitative easing to drive long term interest rates down.
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Actually Germany is refusing to allow the ECB to do a quantitative easing which is why the crisis continues. If Germany allows the ECB to buy up all the junk sovereign debt (as the rest of the EU is demanding) then Germany will be on the hook for the whole mess (resulting in a huge transfer of German wealth to the weaker members of the Eurozone) ....... if they refuse to do so (as they have so far) then the whole Eurozone will collapse. It is not just French banks that own a lot of worthless sovereign paper...... German banks do as well. Additionally the collapse of the Euro will significantly impact Germany's export based economy as the new Deutschmark appreciates significantly against the other new currencies.
Basically the are damned if they do and damned of they don't...... which is why they keep muddling along and hoping for the best.
