German Taxpayers Pickup Part of the Subprime Mess

Not wittingly, at least.

Sub-prime Fallout Extends to Banks in Eastern Germany
Estimated losses Could Hit $69B, with taxpayers picking up the tab for nearly half that amount.

"Everyone has talked about the banking losses, but it could be even more interesting to look at the social consequences of the crisis," said Jorg Rocholl, associate professor at Berlin's European School of Management and Technology. "In Saxony you are talking about a guarantee of almost 3 billion euros to bail out a bank -- money which could have been used in financing schools, hospitals."

Here, in the US, the government doesn't worry about the trade-offs in bailing out banks or homeowners. Uncle Ben just opens the Fed's discount window and lets the banks back their trucks in; meanwhile the government just borrows more money for its bailouts.