Re: Merkel holding her ground... Spain
I have been exchanging many emails with a couple of friends (1 expat 1 Spaniard) that live in Spain. The popular consensus is "the banks are in cahoots with government". They believe if the EU gave every Spanish citizen $15KEuro in cash instead of $25KEuro in debt (to save banks) the country would flourish. They believe the banks are never going to say they have enough capital as long as the cheap and free money is flowing. Tremendous anger exists and the answer seems to be for anyone with any money left to get it out of the banks and out of the reach of the Tax man. This they believe is their only way to survive the onslaught yet to come and they all fear there is a major onslaught yet to come. Additionally there is tremendous unrest and distrust where Germany is concerned and it is common to hear folks talk about "Germany has taken over more Europe now than in 1939 and without firing a shot".
Banks reaction to free money:
Like a glutton at an all you can eat buffet, being full is no reason to say no to more.