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Old 2011-12-22, 16:14   Link #18605
Shadow of Effilisi
Join Date: Oct 2011
California went bankrupt not very long ago. The other states did not bail them out. Still we have the US Dollar. How does the bankruptcy of one member destroy a currency?
Greece alone will not destroy Euro, but if Italy defaults, it almost certainly will.

Germany is highly overestimated. We couldn't even save Greece, and we can most certainly not save Italy or Spain.
Europe had the chance to make a bigger and complete rescue package from the start, but Germany did not want to go too far with it. So what we had instead was a series of half-hearted attempts which failed to give confidence to investors. The crisis continued to deepen and the cost to resolve the crisis mounted.

Wrong. It only has a very small voice in the ECB, it simply got overruled in all bond buying decisions by the PIIGS and France, the latter being most involved in Greece and Italy and thus being the strongest supporter of the bail-outs. Germany opposed them in 2010 but gave in eventually. The ECB president was French until a few weeks ago, now he's Italian. The new and old IMF directors are both French.
I didn't say Germany can order ECB around, but as the biggest contributor to ECB, Germany still have a big say in its decision making. If Germany were a small voice in ECB, we would have had larger rescue packages or even a new Eurobond like the French wanted.
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