German bank clinches rescue deal

The germans have brought in Unlimited protection for deposits.

After giving out to Ireland for doing it.

Vierotchka, I think you've hit the nail on the head, this will continue and continue, and all we're doing is throwing paper money onto a fire.

Something Smells...first the US and now Europe... I think what is next is World at War then World Control.

The EU did what the US could not.
That's quite a story in itself.

The hidden problem with globalization always was this.

The idea of making all these financial circuses interdependent was like stuffing someone with a highly contagious disease onto an overpacked Tokyo subway.

The results? Chaos.

The solution offered? Keep doing it...

To me, these banks have all done the same thing: dug their own graves by lending and spending when they knowingly shouldn't have. It is rather unfortunate that when banks fall that everyone suffers but if it means that somehow in the future things can even half ass stabalize, perhaps it's worth it?

Cant we all just erase everything? Pretend like it never happened and start over fresh?

Angela is not looking perky...not after saying this

"..finance executives who have been irresponsible will be held accountable.."

Would that mean jail terms?

I guess the world has realized that since Bush's term is coming to an end, they need to cut the crap and come clean about the terrible mistakes they've made.

what if the same thing that is happening there happens everywhere else in the world, will things even out or will things just get worse

Germany have just set up a bailout package, so it's safe. It's scary how regularly banks are going under at the moment.

Will the UK now be forced to follow suit, and guarantee savers' money?

I'll be interested to see what the next Brown / Darling move is.

waseem_nu writes,

"I think the only long term solution to this problem is gold and silver based currency. What do you say?"

Great question, so of course I'll punt. You probably know that there are a lot of financial advisors who agree with you.

The problem is that this isn't a decision that will be made by financial advisors. Over 160 economists warned against the Wall Street bailout and were ignored.

Who will choose? Politicians on behalf of their favorite constituencies - the very very rich.

Two concepts immediately hit the guarburator - the Ideal Solution and Objectivity - the instant a panic begins.

A precious-metals-based currency probably could be offered if enough key players are willing to allow it - meaning, they have been hedged. Otherwise we're back with Nixon wondering how the hell to deal with an oil shock, ditch Bretton Woods, erase Keynes and deregulate without sinking the ship.

What we've seen so far is a country with a political class of panderers which is incapable of adjusting to war and necessity.

On economics? Whatever would be best - and I don't know what that might be - we are unlikely ever to see it, except by accident..

It will soon be time to start turning to China to bail the rest of the world out.

HA! SO!

It's incredible that governments are just throwing money at these problems - I wonder precisely when we'll all start to feel the impact of huge chunks of our tax contributions going to bail out banks? Meanwhile the fat cats that ran them irresponsibly still take home their massive cheques, some of them bigger than the GDP of whole countries! It's disgusting that some can be so rich while others are so poor.