A majority of german taxpayers will not pay anymore to Greece, Bloomberg says late Sunday.
http://www.bloomberg.com/news/2011-09-11/germany-readies-surrender-in-fight-to-save-greece-euro-credit.html
Germany is said to prepare for a Greece default. This might be one reason why the Dax has fallen the most of the indexes. German banks has the most Greece debt which will hurt the German banks hard but they can probably cope with the help of money from the European fund and the European Central bank if the bank stops buying Italian and Spanish bonds.French banks which also have big exposurs to Greece is said to have enough money to shield their banks.
If Greece defaults I think Italy will immediately get into focus and this countrys debt to European banks is too big to manage and that could be the start of a very ugly cenario quite fast. Nobody knows what will happen if Greece defaults and just the suspicion by the markets might be devasting. Germany takes a big risk here but it is easy to understand the German taxpayers. It is better with a default now than next year.
http://www.bloomberg.com/news/2011-09-11/germany-readies-surrender-in-fight-to-save-greece-euro-credit.html
Germany is said to prepare for a Greece default. This might be one reason why the Dax has fallen the most of the indexes. German banks has the most Greece debt which will hurt the German banks hard but they can probably cope with the help of money from the European fund and the European Central bank if the bank stops buying Italian and Spanish bonds.French banks which also have big exposurs to Greece is said to have enough money to shield their banks.
If Greece defaults I think Italy will immediately get into focus and this countrys debt to European banks is too big to manage and that could be the start of a very ugly cenario quite fast. Nobody knows what will happen if Greece defaults and just the suspicion by the markets might be devasting. Germany takes a big risk here but it is easy to understand the German taxpayers. It is better with a default now than next year.
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