Judging from the stream of rumors and energetic denials, German bureaucrats, experts, and politicians are furiously working on dozens of projects that all deal with the debt crisis, and they go off in as many directions. But at the end, there is what they call in their inimitable German a Worst-Worst-Case-Szenario.
Europe
The Eurozone Turns Down Chinese Money And Quid Pro Quo
by Wolf Richter • • Comments Off on The Eurozone Turns Down Chinese Money And Quid Pro Quo
For months, rumors China would use its foreign exchange reserves to bail out the Eurozone with the stroke of a plastic pen goosed financial markets. But China has a list of demands. German industry refuses to cede ground. People shudder at becoming dependent on money from the communist regime. Clearly, the debt crisis isn’t deep enough yet.
Germany at Its Rubicon
by Wolf Richter • • Comments Off on Germany at Its Rubicon
No country is economically more dependent on the survival of the euro than Germany: the export powerhouse thrived because Eurozone countries could borrow unlimited amounts of euros to buy German goods. But now that the gravy train has stopped in front of a mountain of unmanageable sovereign debt, Germany finds itself at war—with itself.
Greece’s Extortion Racket Jumps To The Next Level
by Wolf Richter • • Comments Off on Greece’s Extortion Racket Jumps To The Next Level
Participants in the G-20 meeting in Cannes thought it would be a relaxed affair of photo ops, handshakes, and fancy dinners, interrupted by rubber stamping the Grand Plan of bailing out Greece, bondholders, and European banks. But then Giorgios Papandreou, prime minister of Greece, fired his bazooka. And the Greek extortion racket was back on.
Another Eurozone Country Bites the Dust
by Wolf Richter • • Comments Off on Another Eurozone Country Bites the Dust
Real estate in Cyprus has been popular with foreigners—they own 100,000 homes in a country with 803,000 people. Turns out, it’s Cyprus’ national sport sponsored by dumb money. Now the underlying title-deed scandal is unraveling the finances not only of expat owners, but also of the banks and the government … who are hushing it up.
Just Say No, Germany … and Don’t Listen to Geithner
by Wolf Richter • • Comments Off on Just Say No, Germany … and Don’t Listen to Geithner
The German parliament has a historic opportunity to say no to the bankers: it gets to vote on expanding the European bailout fund to €1 trillion, though it had just been expanded to €440 billion. Since no one has any money, it will be in form of leverage, the very mechanism that has wreaked so much havoc already.
Berlusconi, waiting for money.
Regulators Knew of Dexia’s Problems But Were Silenced
by Wolf Richter • • Comments Off on Regulators Knew of Dexia’s Problems But Were Silenced
When a bank is allowed to collapse, the lies behind its financial statements come out of the woodwork—and Dexia, the bailed-out French-Belgian mega-bank that re-collapsed in early October, is no exception: a report surfaced with the damning results of an earlier investigation by French regulators. And then? Nothing.
German-French Fight Breaks Out Over Frigates
by Wolf Richter • • Comments Off on German-French Fight Breaks Out Over Frigates
Germany and France kissed and made up before the G-20 powwow in Paris last weekend. A contrived show of unity to boost the markets. And it worked. But already, Germany is sniping at France again. Over money. Because German taxpayers might have to subsidize a French company. Via Greece.
Fighting over taxpayer money.
Germany and France Kiss and Make up, But it’s hard
by Wolf Richter • • Comments Off on Germany and France Kiss and Make up, But it’s hard
Greece’s Extortion Game
by Wolf Richter • • Comments Off on Greece’s Extortion Game
“Tax fraud is a national plague,” said Greece’s finance minister after he found that Greeks owed $50 billion in back taxes. But it’s complicated. And not much will happen to collect them though Greece might go bankrupt in weeks. Meanwhile, civil servants paralyze the country with strikes because salaries and bonuses are on the chopping block—the most curious bonuses….