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Germany and neoliberals cannot accept the fact that german banks have destroyed the wealth of german savings
It's a game of chicken, and all the high-fallutin' rhetoric about crickets and ants is so much jingoistic bullshit to rally the faithful. It's an open secret that the German banks are insolvent, actually:

Eurointelligence.com: Harsh winter threatens economic recovery

One camp - that includes the European Commisison - wants another "even better" stress test, the other one does not want a stress test at all, on the grounds that this would disquiet financial markets. The German government and the Bundesbank are firmly in the latter category. (They don't want proper stress test on the grounds that the de-facto insolvency of the German banking system would be recognised if you applied some realistic stress scenarios. What is not clear to us is whether the advocates of tougher stress tests want a more honest appraisal of the banking system, or whether they want to be given a second chance at cheating. In any case, we are not holding our breath.)
(and this is from mostly German economists around the FT's Walter Münchau)

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Migeru (migeru at eurotrib dot com) on Fri Dec 24th, 2010 at 06:48:13 AM EST
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