Angela Merkel and the new normal

Just wondering, if as Merkel proposes bondholders from 2013 are facing an increased likelihood of getting burnt - what sort of risk premium are they going to put on funding?
How will this risk premium manifest itself in the system? (Higher mortgage interest rates etc.)?

I sometimes wonder why AM is seen to be talking about the PIIGs bonds… she could just as easily be talking about the bonds of some German banks.

To me these enforced bailouts for hte PIIGs are simply to buy the Germany/French states some time to seperate their banks from their economies.

They don’t want them defaulting now… they firstly want to insulate themselves and then let us default.

Fair dues to them IMO… they are to look after themselves… in as much as we have to look after ourselves!

How?