Thursday, March 27, 2008

Here's a Hint!

Here's a hint from Trichet, the head of the ECB:
Meanwhile, Jean-Claude Trichet, European Central Bank president, told the European parliament that the ECB was committed to easing financial market tensions, but the rescue of banks facing solvency difficulties would be “in a different universe” and require taxpayers’ money. (Financial Times)

I think that this means that any bailouts would be done according to the German model. If Germany, the strongest player in the EU had to use its own taxpayer's money to bail out its banks, everyone else would have to follow the same model.

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