Tuesday, April 27, 2010

Don't count on a German bailout of Greece

If Germany can’t be sure that Greece will avoid default, it would be much better off simply letting Greece go its own way, and then bailing out its domestic banks if Greek did end up defaulting. The cost of the bank bailout would be lower than the cost of a Greece bailout, and the money would remain within Germany.
--Felix Salmon, Reuters, on why German self-interest won't necessarily save Greece. HT: Marginal Revolution

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