Bundesbank fears relapse as German banks face €90bn fresh losses - Ambrose Evans-Pritchard → telegraph.co.uk/finance/fina … osses.html
as ever with AEPs articles the comments below his article are far more informative , i thought this one hit the nail on the head:
*It is interesting to compare this report about the Bundesbank to Mervyn Kings suicide note before the Treasury Select Committee today.
Mervyn said that unless Britain slashed its wrists soon and did some serious blood letting then the game is up, a humiliating downgrade of Britain’s Triple AAA rating is on the cards - and a dumping of the pound.
In that event, exchange controls would be imposed, along wit hteh accompanying mass unemployment, social unrest, politcal change and all.
Mervyn, who is a pretty witty character is own academic kind of way, said he was surprised that unemployment, currently 2.46 million, had not been greater as Britain had plunged into recession. This is coded language for, unemployment is a lot worse than the Brown government is letting on.
After Mervyn’s earlier frank admission that a secret £61Bn had been spent on a couple of UK banks the Bundesbanks problems are as nothing. *
The stability report is here - all 120 pages.
Has a good chronology of the crisis at the end.
Can anyone say where the losses are located?
Housing? Equities? Bonds? Foreign to Germany or domestic?
Yeah I could read the entire report, but if anyone wants to be nice and tell us, that would get you buku brownie points.