Reuters has an in-depth story on the bailout of European banks via a seeming Greek economic bailout. It is interesting. Two things stand out, for me:
James Boughton, a former IMF economist who was also the fund’s in-house historian, remembers feeling that Europe didn’t seem to care what happened to the Greek economy as long as the euro zone’s financial system was protected.
According to former Greek Finance Minister Papaconstantinou, Strauss-Kahn finally decided to get tough with Merkel and insist on debt restructuring in May 2011. Then the unexpected intervened: As Strauss-Kahn was on his way to Europe to meet the German chancellor, he was arrested in New York after a hotel maid alleged he had sexually assaulted her. Under intense media scrutiny, Strauss-Kahn quit. (In 2011 New York prosecutors dropped charges against him and he reached a settlement with the maid.)