German Economics Experts

The German perspective on the bailout:

It’s not a call for assistance; it’s a scream for help. US Treasury Secretary Henry Paulson is asking other countries to help buy up bad US debt. The US government is putting up $700 billion in taxpayer money in the hopes that the measure might restore stability in the financial system. Some countries are planning to help. But the German government has answered this call quickly and clearly: no.

Economics experts think that’s the right response. As they see it, in the long run, those responsible for the crisis — who have been cashed out with high salaries and bonuses for years — will not be penalized for billions “but will be let off the hook like everyone else,” says Carsten Meier of the Kiel Institute for the World Economy IfW. According to Meier, by injecting capital into the market, the US government is putting everyone who speculated and lost back on their feet and thereby standing in the way of a market cleanup.(Spiegel Online)

I’m not sure I’ve heard anyone in the States formulate it quite that bluntly.

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