The Germans and Bank Bailouts

Guardian Live: Reports on remarks by Chancellor Merkel of Germany, the Chancellor stated that Europe would bail out the banks if the need arose. It is interesting that the Chancellor used the term EU, she didn’t say the Germans, as the UK is in the EU, is the Chancellor asking that all members of the EU bailout eurozone banks, this would cause anger on the Conservative backbenches, the UK has already given six billion pounds to Ireland, lets recall that was the same amount as the expected UK budget cuts. One can postulate that should the Greeks default the rest Portugal, Ireland, Spain and Italy will ask for more bailouts at reduce cost and less austerity. In many respects this would be gun to the head of the EU, the expected Greek default has already caused the French/Belgium Bank Dexia to go belly up, the bank carried high Greek debt, its worse with French and Germans banks. Thus what ever deal the PIGS wanted they would have to be given, as the EU could not survive if they all defaulted on their debts. Thus expect the UK to get its wallet out folks, the 2/3 trillion safety net has to come from somewhere, the Germans wont pay it all, and the UK still has its triple A credit rating, thus can still borrow large amounts from the market. This is going to cost the UK folks.