Posen: Germany Not Ready to Bail Out Banks Explicitly

The transcript discusses the reluctance of German banks, particularly Deutsche Bank and Commerzbank, to address their financial issues, similar to other European countries like France and Italy. It highlights the political implications in Italy, where a referendum could lead to a government fall, necessitating a bailout. The discussion also covers the impact of German banking policies on Europe and the challenges of growth in European banks, emphasizing the 'too big to fail' concept.

What are the potential consequences for small investors in the context of the Italian banking crisis?

Discuss the concept of 'too big to fail' as mentioned in the text. How does it relate to German banks?