Seeking Alpha

Germany has a particular interest in helping Spain through its crisis, as the exposure of German...

Germany has a particular interest in helping Spain through its crisis, as the exposure of German lenders to the Mediterranean country is $139.9B, of which $45.9B is to banks. German institutions are particularly exposed to covered bonds, which are often backed by the collateral of consumer mortgages, whose values may have been affected by the cratering of the residential market.
Comments (1)
  • Dr. V
    , contributor
    Comments (1179) | Send Message
     
    Now here comes the kicker!

     

    Germany had their Bundesverfassungsgericht (Constitutional Court in Karlsruhe) decide their participation limit on EU bailout will be set at 190 BIL Euros.

     

    So, my take is, since we can all see that is more or less their amount of exposure to Spain, they will use that 190 BIL Euros earmarked for the bailout, to bail "themselves" out.

     

    Oh, don't act surprised, they are experts at this.

     

    * (Earmarking is a legislative provision that directs "approved funds", (in this case the alleged "bailout commitment" itself), to be spent on specific projects, or that directs specific exemptions from taxes or mandated fees.) So that covers their debt to Spain, and helps pass Germany's costs on to the EU through the bailout fund, where it will be spread around among the other EU Member States. The beauty part is, they don't have to help anyone else out, their commitment being reached.

     

    Germany as their most corrupt, mind you, what's new? This is nothing we haven't seen before.
    26 Sep 2012, 03:52 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|