Sunday, October 5, 2008

Germany guarantees savings accounts

Governments across Europe scrambled to save failing banks, working largely on their own a day after leaders of the continent's four biggest economies called for tighter regulation and a coordinated response.

Germany guaranteed all private savings accounts as the country sought a rescue plan for troubled mortgage financier Hypo Real Estate Holding AG. And Belgian Prime Minister Yves Leterme said he aims to find a new owner for struggling bank Fortis NV to restore confidence in the company before the opening of markets on Monday.

Germany was the strongest EU country, but the $48 billion rescue of Hypo Real Estate fell through, so Germany, like Iceland fired their bazooka, while in the US we use the 250K FDIC pea-shooter. Meanwhile, France said they would buy 30,000 homes, while the ECB's Trichet is still fumbling monetary policy.

I thought it would be impossible that another Central Banker would of been as clueless as our Fed when they could of done something about this crisis, but if we don't have something from Trichet by tomorrow morning, then Bernanke can finally pass the torch!

No comments: