Commerzbank shares fall
Shares in Commerzbank have dropped after a report suggested that Germany is prepared to nationalise the bank if needed.
Der Spiegel, citing government sources, reported on Sunday that Germany could reactivate a rescue fund and buy shares if its second-largest bank cannot raise money by June 2012.
Source:-
http://www.bbc.co.uk/news/business-16029418
Looks like the German government has already begun preparations for a total bail-out.
I Wonder what will happen when the truth of all of the bank's dirty laundry is finally exposed for all too see.
Any fears around the stability of German banks isn't going to end 'nicely'.
The French banks are even worse. Compared to French GDP of around $2.5 trillion, the top 3 French banks have combined debts over $6 trillion
Sarkozy knows that the French AAA rating will go down sooner than he wants, and he will surely continue on a path of forced nationalisation of the French banks.
I doubt it will save his re-election plan though.
'Chickens coming home to roost' springs to mind.
The ECB may eventually decide to print more money to buy more bonds at unsustainable rates, but I think it will take full-blown default.
So not too long to wait for that one
Is the European banking system is on the verge of collapse?
The facts speak for themselves.
"It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong." - Thomas Sowell
