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View Diary: Bank Run in Cyprus, Will it Spread to Southern Europe? (322 comments)

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  •  What transfer of wealth are you referring to? (0+ / 0-)

    By last count, Germany had contributed 20% of the bailout money for Greece. It received back $5 billion. While this was going on, its banks were recapitalized on Greek debt from owning 50% of it to 5%, am amount that dwarfed the German input. This means that the European taxpayer--not the German taxpayer--is footing the bailout which largely benefits German and French banks (since Greece has a primary surplus).

    All of this also neglects what happened in the past when Germany owed everyone else a ton of money. Their debts were forgiven. That too was a wealth transfer.

    There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

    by upstate NY on Sun Mar 17, 2013 at 04:21:39 PM PDT

    [ Parent ]

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