Why did the spending expand (or the tax go down)? I dont think there is one clear answer to this quiestion but it does not matter. Eitherway the government shuld have reacted and cut spending (or collecting more taxes).
> Germans should be mad at their bankers who financed the whole bubble and now demand to be bailed out with their money.
The EU made that difficult to default (imposible? we will se) and the EU created the insentiv to lend so much money to these countrys (bail out garantee).
Additionally the ECB broke there rules of not exepting junk as collateral. The just keeped exepting greek bonds.
The ECB made the hole thing worst (kicking the can down the road) and now it backfires.
Just blaming out the banks is simplistic, the just reacted to instentiv like anybody else.
> Germany being mad at Spain for bank bailouts is like New York mad at Florida for the same. We are all in this together.
2. Like we can see in spain or greek, not cutting it right away can have very bad consequences
3. The slump has been much worse by the thread of defaulting countrys. This would not have happpend if they had cut when they started to get a bad deficit.
Why did the spending expand (or the tax go down)? I dont think there is one clear answer to this quiestion but it does not matter. Eitherway the government shuld have reacted and cut spending (or collecting more taxes).
> Germans should be mad at their bankers who financed the whole bubble and now demand to be bailed out with their money.
The EU made that difficult to default (imposible? we will se) and the EU created the insentiv to lend so much money to these countrys (bail out garantee).
Additionally the ECB broke there rules of not exepting junk as collateral. The just keeped exepting greek bonds.
The ECB made the hole thing worst (kicking the can down the road) and now it backfires.
Just blaming out the banks is simplistic, the just reacted to instentiv like anybody else.
> Germany being mad at Spain for bank bailouts is like New York mad at Florida for the same. We are all in this together.
Sorry that is not the case.