The World According to Nils » Bailout http://nilsjeppe.com Mon, 07 Nov 2011 23:19:44 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Banking Crisis Hits Germany http://nilsjeppe.com/2008/10/06/banking-crisis-hits-germany/ http://nilsjeppe.com/2008/10/06/banking-crisis-hits-germany/#comments Mon, 06 Oct 2008 00:37:05 +0000 Nils http://nils.jeppe.de/?p=1006 Continue reading →]]> The German Government has approved a 70 billion Euro deal to save Hypo Real Estate bank. The financial crisis has therefore finally reached Europe, and it has done so in full force. I do not know how bad the situation of banks is here in Germany, but I can imagine that the loss of trust in the system is going to cause a great deal of agony in the near future.

I am not really worried, yet. But I do wonder how many hits the financial system can take before it starts to sink. It is important to remember that actual numbers on a balance sheet matter rather little if panic sets in and the dreaded “run on the banks” begins.

I do have the gut feeling that the situation is going to get a lot worse before it gets better.

]]> http://nilsjeppe.com/2008/10/06/banking-crisis-hits-germany/feed/ 2