Merkel: ‘No Eurobonds as Long as I Live’, Hollande: ‘Eurobonds will take up to 10 years’ [snbchf]
June 29, 2012 1 Comment
Again we urge our English-speaking investors to stop believing that Germany will bail out the euro zone, as stated in the Financial Times or the Economist, and to use google translator instead and read e.g. www.faz.net (conservative) or the english version ofSpiegel Online (rather left-wing).
More investors are now of our opinion, Ray Dalio doesn’t assume that Germany will bail Europe out. “Be careful when betting against human nature”.
The first German full-blown bailout, namely the integration of the Eastern German part (only 17 million people) caused the German debt (see right) to triple from 430 bln. euro in 1989 to 1200 bln in 1999, a decade during which even the US managed to reduce debtfor a couple of years. Germany greatly underestimated the integration costs.