Menta, will Germany prop up France if/when things sour?
As the balance sheets of French banks deteriorate, as valuations and losses change; the very heart of the EZ pillar of stability, the financial centers, are cracking.
I cannot see any other way to prop up the bond yields except via the ECB buying into problem bond markets.
Germany has painted itself into a corner and the French are as wish-washy as their norm. France will bend anyway the financial winds blow. And if it means the ECB increasing its balance sheet by a trillion euro, it won't worry France at all.
Also French elections are next year. I wonder just how big a deficit the French sucker vote budget will bring.
