I found this via Naked Capitalism. I was expecting a bit more from this article. Germany is rather heavily exposed to the crisis developing in Eastern Europe. This article tries to pick apart the current solution offered by the German government without getting into reasons why the problem may be even bigger in the near future.
I’d like to point out that German financial institutions were more heavily leveraged than some of their American counterparts. They may be holding assets that are even worse. It’s going to be interesting to see how the Germans, the Swiss, and the Austrians (possibly the most exposed to external problems) are going to deal with this crisis.
