They do that and every bond held by a German bank is an instant zero
in response.

EVERY single large European bank blows if they do that. All of them.
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Chancellor Angela Merkel’s government is preparing plans to shore up German banks in the event that Greece fails to meet the terms of its aid package and defaults, three coalition officials said. The emergency plan involves measures to help banks and insurers that face a possible 50 percent loss on their Greek bonds if the next tranche of Greece’s bailout is withheld, said the people, who spoke on condition of anonymity because the deliberations are being held in private
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GERMANY MARKS ITS TERRITORY

Germany could be printing Deutsche Mark bank notes in preparation for dropping the euro

Sunday May 23,2010

GERMANY is rumoured to be printing Deutschemark banknotes again in preparation for ditching the euro and distancing itself from Greece and the other ailing states that started the sovereign debt crisis.

As fears mount about the survival of the euro, it is said Germany’s central bank, the Bundesbank, has been ordered to print new marks as part of contingency plans to leave Europe’s single currency.

This would be an extraordinary step for Germany and would deepen the growing divide between Europe’s leading states. Since its introduction in 1999, the euro has had a tough time trying to win over a sceptical German public, who saw the mark as a symbol of their post-war prosperity. Regarded as one of the world’s most stable currencies, it was second only to the US dollar as the reserve currency of choice for investors and governments.

Despite the joint €750billion euro European Union-International Monetary Fund bailout package unveiled this month, there are growing fears that it will not be enough to save Greece, Spain, Portugal, Italy and other states from financial collapse.

If the bailout package fails to stabilise Europe and the euro, analysts fear the global economy could plunge back into recession.

UBS analysts Paul Reynolds and Joelle Anamootoo said: “If the rescue programme fails altogether, we are looking at a potentially much more negative picture.”

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Deutsche Mark set for comeback instead of Euro in Germany
Updated: June 27, 2011 15:00 IST



Rumours are rife that Deutsche Mark may be re-introduced in Germany and the Euro shelved as the country's currency, a media report said.

There is speculation that Deutsche Mark bank notes are being printed again in preparation for ditching the euro; it's said that Germany's Central bank, Bundesbank, has been ordered to print marks as part of contingency plans to leave Europe's single currency, the Daily Express reported.

Since its introduction in 1999, the euro has had a tough time trying to win over a sceptical German public, who saw the mark - one of the world's most stable currencies - as a symbol of post-World War II prosperity, second only to the US dollar as the reserve option for investors.

In fact, according to a survey, almost three-quarters of Germans now doubt that the euro has a future. They also believe rescue attempts are futile as billions more euros will be paid to bail out Greece which is almost bankrupt.

The poll by German newspaper, the Frankfurter Allgemeine, found 71 per cent had "doubt", "no trust" or thought there is "no future" for the euro. Only 19 per cent expressed "confidence" in it. Sixty eight per cent said they did not think the emergency bail-out of Greece would work.

A separate poll last week showed more than half of Germans thought that Greece should be thrown out of the euro.



Read more at: http://www.ndtv.com/article/world/deutsche-mark-set-for-comeback-instead-of-euro-in-germany-115046&cp