December 1, 2008

Germany failing to spend out

Ever since the credit crisis begun, there has been a quiet war of words, occurring between Germany and the USA, in actual fact it is the Germans who have blamed the US for the crisis in the first place.

However, this is always going to happen, someone is going to get the blame and this did start off in the US.

What is strange about the current situation is that Germany has been very reluctant to bail out the country’s economy, whereas we have seen the most other countries pouring billions into the banks in order to stabilise the economy as a whole.

While those countries that have used taxpayer’s cash to support the finance industry, Germany fails to respond, they have the view that why should the taxpayer fork out when the finance sector has been so reckless in past.

Source [FT]