It is hard not to sicker at the snotty Europeans (and I say this with all the love in my heart) who pointed fingers from lofty heights when the U.S. began tinkering with hundreds of billions of bailout. Originally, Germany was rather curt about the whole thing. “There will be no Euro-wide bailout efforts. Each country would have to stand on its own. The British will back us up on this with their stiff upper lip, go ask them.” And so forth. That didn’t last long, did it?

Germany will provide as much as 500 billion euros ($681 billion) in loan guarantees and capital to bolster the banking system, the country’s biggest government intervention since the Berlin Wall came down in 1989.

This is interesting because it approaches U.S. levels, and because other European economies (excepting maybe the Britain) that would seem to be at least as exposed, if not more exposed than Germany, haven’t announced anything near that amount. More bailout cash in the works, perhaps?
Germany Pledges EU500 Billion in Bank Rescue Plan [Bloomberg]

Comments (6)

  1. Posted by guest | October 13, 2008 at 9:52 AM

    I’m still holding out for the “oh wait, this isn’t enough either” realization.

  2. Posted by EricM | October 13, 2008 at 10:03 AM

    Wow, look at the teeth on that EU deficit rule.

  3. Posted by guest | October 13, 2008 at 10:06 AM

    #2
    They have thrown out the Eurozone pact and it’s every member nation for itself. There’s no point doing it gingerly, better to adopt the sledgehammer approach.
    It might not be enough. But that’s the most they can come up with, without committing political suicide. Also, don’t forget the ECB has thrown in some 1.50 trillion euros into the markets in the preceding months.

  4. Posted by EricM | October 13, 2008 at 10:19 AM

    sarcasm, 3, sarcasm.

  5. Posted by guest | October 13, 2008 at 10:22 AM

    We are not worried in the EU, this crisis
    marks the beginning of a strong, federal
    EU; exactly the US’ very worst nightmare.
    Blessing in total disguise, I must say.
    Cheerioh, yanks.

  6. Posted by guest | October 13, 2008 at 10:22 AM

    who cares about 20 billion, germany has a nearly balanced budget

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