The people of Germany might be screwed (from Der Spiegel):
The German government has had to bail out state-owned banks with taxpayers' money after their managements recklessly gambled away billions on subprime investments. But if a state-owned bank were to go under, the consequences could be disastrous for the whole economy.But wait there's more further down:
...after investing billions in the high-risk US subprime mortgage sector, insisted that the "uncertainties in the American mortgage market" would have "practically no effect" on IKB's investments. A few days later, IKB was on the verge of bankruptcy, with its supposed wonderful US investments worth little more than the paper it was printed on.
Now keep in mind, this is a bank owned by the German government, so all of the taxpayers are on the hook for these losses. Isn't that grand? Read the whole article here.
When the banking crisis comes here who are we going to blame? That's right, the government. Kill the Fed.
Pilfered from Lew Rockwell