Monday, 18 April 2011

"Could Germany afford Irish, Greek and Portuguese default?"

Interesting post by the BBC business editor, making the case that it is in Germany's interest to adopt a softer stance on the bailout terms. Given the exposure of German banks to the three countries, moral hazard problems should probably be addressed some other time lest these countries default now.
Posted by Pedro S. Martins at 16:20

1 comment:

  1. Steffen Hoernig19 April 2011 at 10:16

    Hi, the Economist has an article on the same topic this week: "Europe's banks: Follow the money (Is Germany bailing out euro-area countries to save its own banks?)". It is publicly accessible at http://www.economist.com/node/18560535?story_id=18560535&CFID=162551701&CFTOKEN=52859983

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