“Can Greeks Become Germans?” Thomas Friedman asked last month.
Of course, what Friedman never bothered to ask is, “Do the Germans want to be responsible for bailing out the Greeks (and lots of the rest of Europe as well)?
Survey says…Nein!, according to “Tyler Durden” of the Zero Hedge econo-blog:
Remember when we said (yesterday) that Germany will soon balk over the fact that it is pledging its entire economy to bail out an insolvent Europe? Well, that moment has come.
Dow Jones just hitting the tape referencing Spiegel:
- German Govt: Italy Too Big For EFSF To Save – Spiegel
- German Govt: Doubts Whether Tripling EFSF Would Help It Save Italy
- German Govt: Italy Must Make Savings, Reforms To Exit Crisis – Spiegel
- Italy Debt Guarantee Could Raise Doubts Over Germany’s Finances – Spiegel
- German Govt: EFSF Should Only Help Small, Mid-Size Countries – Spiegel
As a reminder, yesterday’s stopgap announcement by the ECB to expand its SMP purchases of secondary market Italian and Spanish bonds was merely as a precursor to full EFSF monetization until its comes fully online in September (or sooner) in a vastly expanded format (between €1.5 and €3.5 trillion).
If Germany is now against this, which appears to be the case, it pretty much means, well, game over.
Add the uncerainty over the unwind of the Europe rescue “gamechanger” as one of the more naive CNBC anchors said yesterday, and Monday is now guaranteed to be a bloodbath.
This news isn’t exactly “unexpected,” either.