Tuesday, November 15, 2011
German Intransigence Crumbling as EZ Spreads Explode?
Deutsche Bank chief economist Thomas Mayer, in today's Financial Times Deutschland, calls for "unlimited commitment to intervention" from the ECB to stop the collapse of the Eurozone as spreads on Italian, Spanish and French bonds over German Bunds get out of hand (see yesterday's blog "Is France Next?"). This just after Bundesbank President Jens Weidmann reiterated the no-lender-of-last-resort orthodoxy yesterday (blog "All Quiet on the German Front"). Will the walls of German orthodoxy crumble before the Eurozone is toast? If the Deutsche Bank can see the light, there's still hope for the Bundesbank and the German government. But is there time?