Germany Votes to Increase Bailout Fund, Capitalism Saved

And the decision is in: The German Parliament voted with Angela Merkel on a crucial measure to up the bailout trough…

Here’s Bloomberg:

German lawmakers approved an expansion of the euro-area rescue fund’s firepower, freeing the way for European officials to focus on what next steps may be needed to stem the debt crisis.

The lower house of parliament passed the measure with 523 votes in favor and 85 against, granting the fund powers to buy bonds in secondary markets, enable bank recapitalizations and offer precautionary credit lines. It raises Germany’s guarantees to 211 billion euros ($287 billion) from 123 billion euros. The main opposition Social Democrats and Greens said before today’s session in Berlin that they’d vote with Chancellor Angela Merkel’s government, assuring passage.

Stocks in Europe (and the US) sold off into the uncertaint surrounding how this vote would go, so a relief rally is likely.  For now.

Source:

Germany Backs Euro Rescue Fund to Set Stage for Next Steps (Bloomberg)

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