Saturday, February 20, 2010

Any PIIGS Bailout is Just a Bailout of the Banks in Disguise

Different news sources and bloggers are reporting how Germany is upset at the idea of bailing out the PIIGS countries, and somehow they are selflessly doing it for the sake of Europe. Any bailout is just a bailout of the banks once again. Yes these countries are heavily indebted but you have to ask who lent them the money - German, Swiss, Austrian, French and British Banks - not only that they then sold on much of this debt to insurance companies and pension funds. An additional twist is that many financial institutions are limited in what they can invest in - needs to be AA or higher so they then were sold so called insurance in the form of credit derivatives by these banks. The PIIGS go bust and this will cause a huge unravelling in the whole financial system - that is why there might be a bailout.

The problem is exacerbated by the fact that most Germans think Germany is about Manufacturing machine tools and cars - they do not realize how enmeshed the likes of Deutsche Bank and Allianz are in the whole financial mess - hundreds of billiions if not trillions - so yes they do think that they are bailing out their poor neighbors and do feel a bit miffed - will they ever be shown the truth and depth of the whole situation. is an online gold and silver calculator as well as an information and resource site for people interested in finding out more about gold. silver and other precious metals. The Coin, Bullion and Scrap Gold Calculator gives up to the minute prices on scrap gold , junk silver, gold & silver coins

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