Guest Post: To EFSF Or Not To EFSF - A Franco-German Drama

Submitted by Alexander Gloy of Lighthouse Investment Management

To EFSF Or Not To EFSF - A Franco-German Drama

(with simultaneous translation from Euro-lingo into plain English)

  • 4:05: “Direct help for bank recapitalization from EFSF is not at all doable” – German Economy Minister (Translation: “Frogs, I thought we told you already, your plan doesn’t fly”)
  • 6:00: “It is important to us that all banks are equipped for all eventualities and must go to market first for capital” – German Finance Minister (Translation: “May be they’ll understand if I say it – nobody seems to take Roesler serious”)
  • 6:19: “There is no doubt on the soundness of French banks” – French government (Translation: “Hopefully the dim-wits at Agence France-Presse will print my statement without embarrassing typos”)
  • 6:20: “Private capital must have priority, but French state is ready to respond to banks’ capital needs is necessary” – French government (Translation: “Nobody will figure out that this does not match what I said one minute ago”)
  • 6:20: France wants collective, European response to the recapitalization of European banks – French government (Translation: “Let’s see if the Germans respond if I say this”)
  • 6:31: France won’t use the EFSF to recapitalize banks – French government (Translation: “Okay okay, no need to scream like that on the phone”)