"When you take a bit of altitude, you see that the EU is moving to save the banks in Europe and is putting the interests of the eurozone’s banks over and above the interest of the citizens. This has been the policy all along and it has failed.
Unless there are large debt writeoffs which are paid for by the creditors of banks, the whole of Europe will end up like Ireland with a zombie banking system which needs to be recapitalised over and over again." - David McWilliams
If one of these German banks got into difficulty due to their exposure to Greek debt are the "creditors of banks" referrred to those who have bank shares or those with savings in the bank, ordinary depositors?
So does the ordinary depositor pay if the bank gets into difficulty?
If? I think you need to read about Commerzbank, Germany's 2nd largets bank which is likely to be nationalised (the government already own 25pc at present after 2008)
You can be pretty sure it will be a) the taxpayers or b) the bondholders, and not the depositers. Hope that helps.
But please do some reading yourself.
You make that sound like a bad thing. For shareholders it is very bad. For depositors, it means your deposits are owed to you by the German state. When looking to give your money to someone who will pay you back, there aren't many better options.
At the end of the day it is all the same thing!!! You can pay more taxes, see your deposit wiped out, or the value of the pension fund go down...
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