Germany Isn't Safe Either

ZeroHedge linked to a fantastic presentation from Carmel Asset Management (below) on how Germany is riskier than you think. The key stat, at least for me, is that if you count up all of Germany's commitments to that alphabet soup of bailouts (EFSF, ESM and EFSM), and that money is spent, Germany goes to a debt-to-GDP ratio of almost 100%. Das is verboten from a fiscal solvency point of view as that level of debt is just not sustainable over the long run. Also, given that the bailouts are likely insufficient if Italy and Spain need to be bailed out, Germany's debt to GDP ratio could go much higher. The worst case scenario for Germany would probably be if they do spend all the money they think they need to bail the Euro out and it fails anyway because the estimates end up just being plain wrong (a distinct possibility given how often the PIGS have been hiding exposure).  Achtung Baby- Germany is Riskier Than You Think