131–136 of 136 posts
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But bank failures cause a run on other banks. If the entire system collapses the FDIC will be unable to make good on its obligations.
The FDIC is backed by the full faith and credit of the United States and just like no politician will vote to reinstitute the draft, no politician will do anything but prioritize those payments very, very high.
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I agree. The simplest way to make this clear is to simply let the Greek banks default (and any other banks for that matter). This will expose the German banks and the German Government will be forced to bail them out. This bailout will be a much easier sell than the current one as it will be clear to the German taxpayer that they are bailing out their own banks who made bad bets out of greed, lack of diligence and ju…
German banks are - by a large margin - not the most exposed to Greece. French banks for example are much more exposed to Greek dept. If Greece fails, this will hit German banks, but other banks much more, it might be especially hard for countries with a smaller GDP and a higher bailout/GDP ratio. As a German taxpayer I don't care whom I bail out. Funny thing: People talk about Germany, instead of Greece. Sure, bailin…
So the Germans don't have to worry about bailing out Commerzbank or Deutsche bank the way the French are worried about BNP or Credit Agricole, but they do have to worry about what happens if the Bayerische Landesbank can no longer fund Bavarian factories.
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Human rights are a factor, plus there's the fact that Turkey is a Muslim country, though many in the EU won't admit that. But even that could probably be overlooked if not for the fact that Turkey is a huge country. With a population of 73 million people (and a growing population, whereas many European states are stagnant in this regard), Turkey would immediately become the second-largest EU state, which means more m…
Some Turks joke that the Turkish army has the largest gay porn collection in the world. According to a Turkish friend of mine, yours is not an accurate characterization of Turkey. There are still huge problems with democracy, power of the army, corruption, media controlled by people in power, torture, Cyprus, and more. According to him many of these things are worsening -- he is afraid that Turkey is going to go furt…
The EU has and always will be a forced construct that Germany will essentially have to shoulder. Other countries were going to tolerate Germany's reunion only when they support the EU. Now that they realize how the construct attempts to level the standards of live across the union, Germany realizes in what kind of downward spiral they tapped. Going to be even more "fun" to watch, when certain rules such as "penalty"…
It is only going to be fun if you can watch it from afar. Those of us who live in Europe see no point in antagonizing somebody who isn't a pain in the ass.
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That's what the Economist is all about, though - extremely well written and produced with a very predictable and consistent message and opinion.
Zwieback - that's the coolest alias I've seen for a long time :-D Are you plattdeutsch?
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Are you saying Germany has no debt?
There's a difference between investment and debt. If your cash flow equals your debts, it's an investment.