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26 Jul, 2011 18:13

Germany rescues its banks by helping out Greece

Ratings giant Moody's has recently warned Germany and France that their creditworthiness could be harmed by a second bailout of Greece. Financial analyst Fabio de Masi says these powers are rescuing their banks by helping out Greece.

On Monday Moody’s downgraded Greece’s credit rating by three notches down to “Ca,” just one notch above what it considers “default.”The agency also said that it may reconsider the ratings of eurozone powerhouses Germany and France following the Greek package. However, Fabio De Masi, a financial analyst from Germany's Left Party, believes there is no real threat regarding the credit rating of Germany as so far it has benefited from the crisis.He observes that by rescuing countries like Greece, Portugal and Ireland, Germany is actually rescuing German, French or British banks which hold these countries’ debts.The only concern for Germany is that it will lose a lot of taxpayer’s money, notes De Masi.“If you want to bring the house in order and to consolidate public finances you have to tax wealthy people and banks that have so far benefited.”