Friday, May 14, 2010
Add this to the mix
Daily Mail: Sarkozy threatened to withdraw France from the euro unless Germany vowed to back Greece
French president Nicolas Sarkozy threatened to pull his country out of the euro if Germany did not agree to rescue Greece’s economy, it emerged today.
Mr Sarkozy made his sensational ultimatum at a meeting of EU leaders in Brussels last Friday.
Posted by devo @ 09:33 PM (1040 views) Add Comment
9 Comments
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1. alan said...
Lots of German people I know say that the Euro has meant higher prices and a link with "can't pay, won't pay" nations. Perhaps Angela Merkel should have called Sarkosy's bluff ? A two tier Europe might work where there is commonality of understanding between parties.
What a price for unity! Portugal, Spain and Italy will be lining up for a handout. Eventually this will bust the system. Even Nick Clegg has said he is less keen to join the Euro than he was.....
2. sureseam said...
Who is being bailed out this time? Is it Greece? Or the French and German banks who bought deeply into Greek bonds?
Yet again the merry go round compounds the bank debts as it offloads them onto taxpayers.
Sooner or later this madness has to end and the later it is, the more messy it will be.
In the meantime the bankers will no doubt continue to "earn" massive bonuses.
What will break this pattern?
BTW: this is also the pattern that involves banks avoiding repossessing property so that they don't have to admit that they should be downgrading the valuations of large swathes of their property loan portfolios.
3. fjcruiser said...
well said sureseam.The French and the Germans are bailing themselves out!
I just wonder how much longer can government ignore realities like the Euro is doomed, property prices are way too high and evryones need to go on a serious diet....
4. enuii said...
So, in other words, the music will stop when the Germans run out of money!
5. alan said...
OK, thanks for that information, Sureseam. So, why don't the banks stop lending to risky countries and risky property ventures..?
Ah, just spotted the articles...house lending down - only 80% LTVs. Gottit!
6. miken said...
Sounds like Sarkozy had a tantrum (ref Adam Boulton) in order to stand up for the Greeks. It makes sense, but at what cost? Greece will embezel billions and then ask for more! I feel they will eventually default.
7. Nice Weather We're Having said...
Near future headline: 'Germany bails out of Euro'.
From same paper: Articles for sale - part-used guillotine, good working order, spare blades. 1oz gold o.n.o. Buyer collects.
8. sureseam said...
Alan @ 5: So, why don't the banks stop lending to risky countries and risky property ventures..?
If there is any apparent short term profit then the traders get their bonuses and doubtless there are manager looking to expand their share of trade to justify their bonuses. With moral hazard in play: why would they stop?
MikeN @ 6: I feel they [Greece] will eventually default.
There will be twisting and smoke and mirrors but you are so right sir.
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