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Letting Eastern Europe Burn

You sort of knew the Germans were going to be pissed. Every time something happens in Central or Eastern Europe all eyes get Teutonic twinkles and the likes of Angela Merkel start getting fruit baskets in the mail. What's the problem this time? Cheap mortgages funded with the carry trade (we tried to borrow Canadian dollars but people only laughed), declining demand for the exports headed to the West, declining currencies. All in all, "a New Iron Curtain," is said to be descending. Very dramatic. Probably not the reference to use on Germany, when coming from the East, you understand.
In a way you can almost think of an East Europe bailout as a proxy for mortgage and homeowner bailout plans in the United States. Unlike the United States, however, it doesn't look like billions are going to be tossed at the problem in hopes the bubble might re-inflate. This isn't because of any particular moral fiber on the part of Western Europe. Rather, developing a mandate there is about like herding cats... into a doberman infested bathtub.
EU Rejects a Rescue of Faltering East Europe [The Wall Street Journal]