The Problem with German banks
Published by MartinVarsavsky.net in General with No Comments
Pity the Germans. They did everything right vis a vis finance and things went wrong. They did not go into consumer debt like the Americans, they did not have a real estate boom and bust like the Americans, unlike the Americans, their savings rate was high…but the problem is that, as a result, German banks piled money and did not know what to do with it. So they lent it to Americans. So eager in fact were they to lend money to US institutions that, even when Lehman was under, they sent Lehman 300 million euros. And the paradox is that if Paulson can´t get a package through to save US banks, I can´t imagine he will get a package to save German banks. So German banks will have to be helped by the German taxpayer who….did everything right. This, btw, is a prelude to what could happen in a much bigger scale to the Chinese, who are now the biggest creditors of the US government. If Americans don´t learn to live within their means, the next ones to be stuck with huge amount of worthless paper will be the hard working Chinese. But then, who said life was fair?
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german reader on September 27, 2008 ·
“But then, who said life was fair?” – Right! So also give the Germans another good advice too: FON in Germany is nothing but illegal! T-o-t-a-l-l-y i-l-l-e-g-a-l! No ISP (of value) is allowing to share private internet connection (by written contract). – You never stated that this fact is untrue, but like a good vendor, you did not discuss it, instead making a lot of words around the truth, some sort of big, bigger “verbal nebulization theater” – making your readers believing just the opposite – but you always knew it better. Sure! – Sharing net connection with FON is totally illegal in Germany – for three years now! FON should stop promoting FONsharing concept in Germany! Recognise pls, old boy, that you promised big ISPs following FON also in Germany, months ago, exactly in this blog! You remember? Sometimey you seems to have some sort of amnesia… But: nothing happened until today. – Dont make us believe again, that this will change. The FON concept failed in its original way! – Tell this to the marines again! – But as You stated correctly: “Who said life is fair!” – So tell this truth also to YOUR readers via this blog! – Varsavsky YOU are a leecher in Germany!! Your speculation is simple and everybody who has a clear state of mind can recognice this truth! You are a big entertainer and technical illusionist!
So hurry up, old boy, making your FON exit to Google.com ASAP and find yourself probably some rankings higher in Forbes list 500 – probably to compensate Your hedge fond losses in american fincancial crisis!!
– No way! – Making people believe earning money with “La Fonera” (which will mostly never happen in 16 yrs) and stimulating people in (forbidden) sharing private internet connections is the same damned crappy thing, than giving credits to millions of americans money to buy houses they cannot afford. – its the same way, the same play, the same gay! Varsavsky! – so 1st think! then write!
ez on September 29, 2008 ·
Martin, I think “german reader” was left by his girlfriend and is in a bad mood, just ignore this kind of comments. We all know that by entering your blog we re reading OPINIONS and we may or may not agree but in the end we are the ones entering the blog, not you sending this comments to us.
I enjoy your blog as much as I enjoyed your IE lectures… so please keep it up!!!
Andres on September 29, 2008 ·
Woww!…I think “german reader” is an ex-boyfriend of Nina
xl on October 4, 2008 ·
Are you sure that is obligatory by contract to have your wi fi protected to avoid any external connection???
I’m not sure about it, and I think that so many telecos like DT sold routers that are opened and unprotected. I think is your choice to open or to close the acces to your wi fi network. So if you’re an alien I’m not sure you’re doing something illegal.
If you rent a house and you invited your parents to a dinner, are you doing something illegal??? If you invite your friends or your neighbours, it’s not legal?? That this is the same for wi fi…
That you can not do is to rent your flat to other person, if it exist a clausule that forbidde to rent your flat, but if doesn’t exists any specification in the contract you’re free to do what you want.
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Nick on September 27, 2008 ·
Well, is there THE German bank?
I think that the private German banks behaved quite well… as a result of their risk management.
The problem are the public banks. SachsenLB, etc.
For example, it’s the KfW that transfered the 300.000.000 €… a public bank…
By the way, in Germany bank lending to enterprises rose by 9% in the year to mid-2008.
And don’t forget, consumer debt stands at 101% of disposable income in Germany, compared with 140% in America and 172% in Britain.