World Trade
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- Date Submitted: 06/05/2011 09:01 PM
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Colleen Kelley
2011
International Trade
Colleen Kelley
ECON 220-H2WW
Assignment Individual Part of Group Project
May 7, 2011
Germany banking system which has been able to build up its loss reserves, while banks like Ireland and Greece are in near bankruptcy because of the problems Irelands and Greece’s bank has had with trying to bailout its banks, only to be torpedoed by the US treasury secretary Timothy Gerthner, who believes that bankers take priority over taxpayers.
Given the political paralysis in the EU, and a European Central Bank that sees its main task as placating the editors of German tabloids, the most likely outcome of the European debt crisis is that, after two or so years that French and German banks have build up their loss reserves, the insolvent economies will be forced into some sort of bankruptcy.
While Germany still struggles to come up with a united response to the financial crisis sweeping the continent. There is one banking system in Germany that is sound and secure. The over 400 savings banks in Germany’s Sparkasse system have for many years succeeded with following a conservative strategy that many German citizens have reap benefits from.
The Sparkasse banks which are the Germany equivalent of a savings and loan, but they’re owned by local government, not private investors; and they serve everyday German citizens.
The bank which loans money out to local small business owners; and Germany citizens looking to buy a house or a car. But the collateral requirements are steep. At least 20 or more percent is needed for a mortgage. So while stockholders in the United States and elsewhere worry over the losses in their stock portfolios, Sparkasse Savers breathe easy. The Sparkasse system is tailor-made for wise investors. The bank serves all customers, no matter how small. Across the country, they hold nearly $1 trillion in deposits.
The Sparkasse banks are important because they stay out of going after the big businesses and help...
2011
International Trade
Colleen Kelley
ECON 220-H2WW
Assignment Individual Part of Group Project
May 7, 2011
Germany banking system which has been able to build up its loss reserves, while banks like Ireland and Greece are in near bankruptcy because of the problems Irelands and Greece’s bank has had with trying to bailout its banks, only to be torpedoed by the US treasury secretary Timothy Gerthner, who believes that bankers take priority over taxpayers.
Given the political paralysis in the EU, and a European Central Bank that sees its main task as placating the editors of German tabloids, the most likely outcome of the European debt crisis is that, after two or so years that French and German banks have build up their loss reserves, the insolvent economies will be forced into some sort of bankruptcy.
While Germany still struggles to come up with a united response to the financial crisis sweeping the continent. There is one banking system in Germany that is sound and secure. The over 400 savings banks in Germany’s Sparkasse system have for many years succeeded with following a conservative strategy that many German citizens have reap benefits from.
The Sparkasse banks which are the Germany equivalent of a savings and loan, but they’re owned by local government, not private investors; and they serve everyday German citizens.
The bank which loans money out to local small business owners; and Germany citizens looking to buy a house or a car. But the collateral requirements are steep. At least 20 or more percent is needed for a mortgage. So while stockholders in the United States and elsewhere worry over the losses in their stock portfolios, Sparkasse Savers breathe easy. The Sparkasse system is tailor-made for wise investors. The bank serves all customers, no matter how small. Across the country, they hold nearly $1 trillion in deposits.
The Sparkasse banks are important because they stay out of going after the big businesses and help...