Saturday, July 23, 2011

German central bank chief Jens Weidmann and Mike "Mish" Shedlock on the Greece Bailout.

"German central bank chief Jens Weidmann was openly critical of the package,
saying it shifted risks onto taxpayers in countries with stronger finances
and weakened incentives for governments to keep their finances under control.

"This weakens the foundation for a currency union
based on fiscal self-responsibility," said Weidmann,
a European Central Bank policymaker...

Given that nothing has been solved,
the climax of this saga has still not yet been seen.

The deal still requires every member nation to approve changes to the Maastricht Treaty,
which may not happen.

Moreover, Greece is just the first of many nations to test the system.

Ireland, Portugal, Spain, and Italy are waiting on deck.

Finally, will German taxpayers
go along with a plan their own central bank is highly critical of?"

Mike "Mish" Shedlock

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