I had the "fortune" of living in a German town near Dresden (former DDR) for 6 months... I was sent by my company for training. I am Indian btw..
I can easily say that I have never felt more uncomfortable in any other part of Europe (or the world) as I have felt there.. and I have lived for long periods in a lot of different countries.
The problem in (the former) East Germany is many fold... but OF COURSE you guys have never felt any of these because you are white.. now I'm not whining... But the simple fact is that people in East-Germany DO have things to say/stare/even attack you based on the colour of you skin.. There have been many incidents that left me scared shitless in the 6 months I was there.. a lady almost left a Rotweiler chasing after me, I had beer bottles thrown at me by skin-heads.. but I didnt go to the Police, coz I know it wouldnt been in vain, despite that I have almost native fluency in German..
To say that the Police in that part of Germany is biased is putting it lightly.. I was checked (by the same cops!) again and again and again by them.. sometimes 10 times in a week, including many times when there were **** kids just hanging out just down the street.. on asking why this was happening repeatedly.. "Oh.. well you look different, and we are keeping an eye on you".. with a smirk to boot.
As I said, there are different kinds of racism, all too evident, in that part... There's the Right Wing scene.. which doesnt really bother me much 'coz those knuckle heads are good-for nothing idiots with bad parenting. Then there's the police.. which is definitely dsiturbing. Then you have the people who've grown up in the former DDR.. who have the concept of "untermensch" all too fresh in their minds.. for those who don't know what this means, google it.
And when you do talk to normal, educated, well-spoken Germans from the west, they blame it on the deep-rooted economic problems in the east. I say balls.. I don't know what, but the problem definitely has it's roots else where.. I have been to the parts of Europe (and the world) which have unemployment rates higher than this place, worse infrastructure, no social support.. but never this problem!
What is supremely distrubing however, that given Germany's history, it is apparent that most Germans (the good, nice ones) are ignorant or apathtic to this problem. I am not saying they should feel guilty about their country's legacy forever, but there's definitely not being done enough to make it any safer..
Which brings me to my last point.. Well so they don't like (dark skinned) foreigners there in the east and made it quite apparent to me... and yes they have won. I will never ever return to East Germany and advise all the "darkies" i know to never venture there.. A pity, yes, 'coz even East Germany is a really beautiful place (albeit with ugly people)... so yeah, they are getting what they wanted..good for them!
Still, personally I dont regret going there one bit, in hindsight. The experience really made me mentally stronger and now the benchmark has been set so low that I literally count my blessings everwhere I travel. In a way it has made me more appreaciative of small things that go un-noticed and more patient with people...