Too Big to Fail

1 EURO Coin
We've heard this frequently in the last 4 years and this argument was used to force people to agree in a rush on the ESM - a pretty dangerous security.

To me that Term "too big to fail" is often misused and hardly justified. Occasionally it sounds like blackmail.
Just consider the strong words the former french President Sarkozy used, when he pictured the doom scenario, if the large banks in France would default. Back in 2010 he forced Merkel to accept the ESM (what a ridiculous name for exactly the opposite effect) and he used pretty harsh words, like unfriend with germany (unfortunately not on Facebook) and revoke the EURO in France.

Now, two years in the game, they want us to accept  furhter bail-outs and release additional funds for tumbling countries and they have germany exactly where they wanted us to be - on the hook.

We don't have an awful lot of observations and people might think, it could work out but my gut feeling tells me different.

What worries me most, is that nobody revisits the ESM decision and give it a fresh perspective today.


This is certainly not the way you build a strong currency.




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