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Buba's Weidmann Refuses To Be A Good Socialist, Rejects "Free Lunch"

Tyler Durden's picture





 

Jens "I don't say no to everything" Weidmann just said "nein" again. This time confirming Germany's position that the banking union idea - or an aggregation of deposit guarantees - will not cover existing bad debts. In other words, this will not be allowed to become a back-handed way of transferring wealth from Germany to peripheral banks in a free lunch. He had more to say (via Bloomberg):

  • *WEIDMANN: MUST ENSURE PEOPLE DON'T LOSE TRUST IN CENTRAL BANKS
  • *WEIDMANN SAYS CENTRAL BANKS SHOULDN'T TAKE ON FISCAL TASKS
  • *ECB'S WEIDMANN SAYS PRINTING TOO MUCH MONEY LEADS TO INFLATION
  • *WEIDMANN SAYS BANKING UNION NEEDS TIME FOR PROPER PREPARATION
  • *WEIDMANN SAYS BANK UNION SHOULDN'T COVER EXISTING BAD DEBTS
 


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Thu, 09/27/2012 - 09:09 | Link to Comment Jason T
Jason T's picture

For the record, I have lost all "trust" in the Fed and ECB as of now.  too late for this guy fellow.

Thu, 09/27/2012 - 09:13 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Those guys are toast......Michelle is now in charge.

 

You should have showed up for lunch last week.....it was pretty good. Got a new menu this week. If you're a rabbit.....you'll luv it!

 

Thu, 09/27/2012 - 09:24 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

This the beginning of World War III. First, Germany tried to take over the world with military force, but this time they are conquering countries with austerity. Meanwhile, the hedge funds have allied with Germany in their quest to conquer Europe, and speculators continue to hammer the peripheries with an artillery of credit default swaps and short selling of government debt. Stop this madness! Ban speculation and bring back Europe’s social safety nets. NO MORE AUSTERITY!

Thu, 09/27/2012 - 09:27 | Link to Comment Popo
Popo's picture

Wait.  Who are you?  And what have you done with MDB?

Thu, 09/27/2012 - 09:28 | Link to Comment Spastica Rex
Spastica Rex's picture

It's like Madonna or Bowie reinventing themselves.

Well, not really.

Thu, 09/27/2012 - 10:33 | Link to Comment saturn
saturn's picture

Sorry irreleWeidmannn, you sheep in wolf's clothing, tell Angela that the faith in central banks has been torn apart by none other than the central bankers themselves. Aufwiedersehen - nicht.

Thu, 09/27/2012 - 14:10 | Link to Comment Brit_Abroad
Brit_Abroad's picture

Yup, this is the crux of the matter.

So, him saying no makes him a good guy.

Fahr zum Teufel.

He is a muppet just like the rest of them.

Systemhörig wie die anderen auch

Thu, 09/27/2012 - 09:30 | Link to Comment EscapeKey
EscapeKey's picture

Yep, it's always the "speculators" fault. Never the central banks providing all the liquidity.

In other - real - news; Spain budget delayed, no doubt because it's doubleplusgood.

http://www.marketwatch.com/story/spain-budget-delayed-for-later-thursday-in-madrid-2012-09-27?link=MW_home_latest_news

Thu, 09/27/2012 - 09:30 | Link to Comment forwardho
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MDB, brevity is the soul of wit.  Your irony is beautiful ( and yet also completly tragic).

Thu, 09/27/2012 - 09:25 | Link to Comment SMG
SMG's picture

So basically they are going to take on fiscal tasks, print too much money and cause inflation, and cover existing bad debts.

See this is easy if you know how to interpret what they are saying.

Thu, 09/27/2012 - 10:10 | Link to Comment The trend is yo...
The trend is your friend's picture

Well what do you mean you won't buy this 20 year bond which has gone sour

Thu, 09/27/2012 - 09:27 | Link to Comment slaughterer
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WEIDMAN SAYS DRAGHI MUST BE STOPPED FROM HIS MADNESS

Thu, 09/27/2012 - 10:37 | Link to Comment saturn
saturn's picture

Nur mit ein scharfes Messer!

Thu, 09/27/2012 - 09:54 | Link to Comment slaughterer
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WEIDMAN SAGT "ICH LESE ZERO HEDGE UND TYLER DURDEN HAT VOLLIG RECHT: MOARER QE IST KEINE LÖSUNG."

Thu, 09/27/2012 - 11:15 | Link to Comment Terp
Terp's picture

You bet he does.

Thu, 09/27/2012 - 09:15 | Link to Comment holdbuysell
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"*WEIDMANN: MUST ENSURE PEOPLE DON'T LOSE TRUST IN CENTRAL BANKS"

Too late. You're fired.

http://www.youtube.com/watch?v=YK4t1377ZK4

Thu, 09/27/2012 - 09:12 | Link to Comment LongSoupLine
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I'm buying German products in support of Weidmann...first stop, beer purchase.

Thu, 09/27/2012 - 09:26 | Link to Comment slaughterer
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German beer is over-rated: stick with the domestic craft beers from San Diego. 

Thu, 09/27/2012 - 09:38 | Link to Comment LongSoupLine
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The idea is support...which means I would have to support CA with San Diego beer purchases.  Not gonna happen...CA can fall into the fucking ocean as a good start.

Thu, 09/27/2012 - 09:49 | Link to Comment slaughterer
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OK, support Germany, if you want.  I would take a Stone "Ruination" IPA over a Jever Pils any day.   

Thu, 09/27/2012 - 09:42 | Link to Comment Diesel Seven
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 . . . or Blatz

Thu, 09/27/2012 - 09:30 | Link to Comment Village Smithy
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Stihl chainsaws do it for me.

Thu, 09/27/2012 - 09:14 | Link to Comment DavidC
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WEIDMANN SAYS BANK UNION SHOULDN'T COVER EXISTING BAD DEBTS

Duh...

DavidC

Thu, 09/27/2012 - 09:17 | Link to Comment Sudden Debt
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WEIDMANN SAYS THIS

WEIDMANN SAYS THAT

I'VE HAD IT UP TO HERE WITH THAT WEIDMANN GUY!

Thu, 09/27/2012 - 09:39 | Link to Comment disabledvet
disabledvet's picture

He says nein to nein apparently...

Thu, 09/27/2012 - 09:47 | Link to Comment RSloane
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Relax! He'll probably face_plant off a cliff onto a rocky outcrop in some mysterious hiking accident.

Thu, 09/27/2012 - 09:21 | Link to Comment holdbuysell
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Watch what they DO, not what they SAY.

Thu, 09/27/2012 - 09:25 | Link to Comment Sudden Debt
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Always listen to the experts.

They'll tell you what can't be done and why.

Then do it - Robert A. Heinlein

Thu, 09/27/2012 - 09:21 | Link to Comment Comay Mierda
Comay Mierda's picture

its just political posturing

wait til the banks start crashing and this dude will change his mind

Thu, 09/27/2012 - 09:25 | Link to Comment swissaustrian
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Yes he bailed them out in 2008/09, too.

Thu, 09/27/2012 - 09:23 | Link to Comment RSloane
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Gee, I don't understand why he is so resentful of German wealth being transferred to all over the place. It must be a personal character flaw.

/sarc

Thu, 09/27/2012 - 09:29 | Link to Comment negative rates
negative rates's picture

Once upon a time, Germany was falling in love. But now it's only falling apart.

Thu, 09/27/2012 - 09:30 | Link to Comment AUD
AUD's picture

ECB'S WEIDMANN SAYS PRINTING TOO MUCH MONEY LEADS TO INFLATION

No, loaning against junk collateral IS inflation. The balance sheet of the ECB is already a heap of shit. The Euro is junk.

Fuck Weidmann, & fuck his bank.

Thu, 09/27/2012 - 09:33 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

Here's the rub..it doesn't matter. 

The moolah is already "vaporized" (or "vapourised" for our English speaking audience).

Either the Northerners bail out the PIIGS or the PIIGS renege on their debts - to the Northerners.

Same difference ;o)

Thu, 09/27/2012 - 09:37 | Link to Comment Diesel Seven
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I agree, but petro will get mightily expensive in drachmas, lire or pesetas.

Thu, 09/27/2012 - 10:03 | Link to Comment MillionDollarBoner_
MillionDollarBoner_'s picture

Luckily their peasant agrarian economies don't rely so much on fuel. So the locals will be fine - just have to work a little harder doing stuff by hand instead if with machinery. Same as it ever was.

The townies, on the other hand, will be royally fucked. This includes the bankers, insurance agents, hairdressers - all candidates for the B-Ark...

Karma, bitchez!

http://www.geoffwilkins.net/fragments/Adams.htm

Arthur seemed to come out of a trance.

"You mean you've got a hold full of frozen hairdressers?" he said.

"Oh yes," said the Captain, "Millions of them. Hairdressers, tired TV producers, insurance salesmen, personnel officers, security guards, public relations executives, management consultants, you name them. We're going to colonize another planet."

"What, with that lot?" said Arthur.

"Ah, now don't misunderstand me," said the Captain, "we're just one of the ships in the Ark Fleet. We're the 'B' Ark you see.

 "Well what happened you see was," said the Captain, "our planet, the world from which we have come, was, so to speak, doomed."

"Doomed?"

"Oh yes. So what everyone thought was, let's pack the whole population into some giant spaceships and go and settle on another planet."

 So it was decided to build three ships, you see, three Arks in Space, and ... I'm not boring you am I?"

 "Yes, so anyway," he resumed, "the idea was that into the first ship, the 'A' ship, would go all the brilliant leaders, the scientists, the great artists, you know, all the achievers; and into the third, or 'C' ship, would go all the people who did the actual work, who made things and did things, and then into the `B' ship - that's us - would go everyone else, the middlemen you see."

He smiled happily at them.

"And they made sure they sent you lot off first did they?" inquired Arthur.

"Oh yes," said the Captain, "well everyone said, very nicely I thought, that it was very important for morale to feel that they would be arriving on a planet where they could be sure of a good haircut and where the phones were clean."

Thu, 09/27/2012 - 11:19 | Link to Comment Terp
Terp's picture

Sad but true. Could have been done in 2010 already, though...

Thu, 09/27/2012 - 09:33 | Link to Comment Diesel Seven
Diesel Seven's picture

How dare Germany to think that their war reparation payments where done. They better toe up to the Socialist NWO or risk getting their asses kicked by the French, Spanish and Greek armies. (If you can't see the sarcasm in the aforementioned, the Huffington Post might be a better read for you than ZH.)

Thu, 09/27/2012 - 09:34 | Link to Comment Quinvarius
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Too late fker.  The decision to bail out the banks while remaining in denial about how much that was actually going to cost has already been made.  You can't jawbone this.  Tell me now you can cut all the banks off and let them die or STFU.

Thu, 09/27/2012 - 09:35 | Link to Comment WaEver
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WEIDMANN PISSES IN DRAGHI'S PUNCH BOWL

Thu, 09/27/2012 - 09:48 | Link to Comment Quinvarius
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He is just pissing in his diapers having a tantrum.  There was never any doubt the banking system would print money to protect the banking system.  There is no doubt they will continue to do the same.  Dude can spray as much as he wants down his own leg.  It changes nothing about the nature of a banker.  They started down this road with plenty of historical evidence as to what the outcome was going to be even as they changed laws to make sure they could print as much as they wanted.  Lies are not working.  The next thing to come is complete embargo on all information related to how much money they are printing.  If you think they are printing a lot now, wait until they think know one knows about it.

Thu, 09/27/2012 - 10:05 | Link to Comment MillionDollarBoner_
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"When things get really bad, one has to lie"

Thu, 09/27/2012 - 09:42 | Link to Comment NEOSERF
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Real question here...does simply printing lead to inflation or does printing and distribution by banks lead to inflation?  If the money is printed and stored, then money on the street doesn't increase and inflation wouldn't be a factor.  If banks aren't lending but the increase in money supply is used to buy bonds and MBS is this contributing to inflation?  Seems like it is as these bonds are technically "on the street".

Thu, 09/27/2012 - 09:52 | Link to Comment Quinvarius
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Bank reserves are not an inflationary reservoir.  They are an inflation multiplier.

Wed, 12/19/2012 - 19:10 | Link to Comment JeffB
JeffB's picture

It is still a lie leading to malinvestments that make everyone poorer in the bargain. At least everyone other than the banksters, politicians and their cronies.

 

Thu, 09/27/2012 - 09:43 | Link to Comment BrigstockBoy
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Send in the clowns...

Thu, 09/27/2012 - 09:54 | Link to Comment Vince Clortho
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Weidmann says  "I still believe people trust the Central Banks"

Leaves me laughing at multiple levels ranging from sarcasm to slapstick to pity.

Thu, 09/27/2012 - 12:05 | Link to Comment Anasteus
Anasteus's picture

Neither Weidmann nor anyone else among the EU statists have clearly named the merits of the problems yet. They are still reiterating the consequences over again in desperate hopes to hide the reasons and keep the status quo running; Václav Klaus is perhaps the only exception. As long as this behavior persists nothing can be relevantly improved. The good news is the more they are striving to keep the status quo the sooner it will go all bust; a self-destructive insanity. Well, on the other hand, not that good news...

Thu, 09/27/2012 - 10:15 | Link to Comment caimen garou
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The Garou says "get out of debt"
The Garou says "don't trust banks"
The Garou says " prepare for food price surge"
The Garou says "If Weidmann can spew off at the mouth so can the Garou"

Thu, 09/27/2012 - 10:22 | Link to Comment Remington IV
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zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

Thu, 09/27/2012 - 11:43 | Link to Comment q99x2
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*JAW WEIDMANN BONE"

Thu, 09/27/2012 - 12:45 | Link to Comment GoinFawr
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Zerohedge: doing it's part to preserve the myths of 'socialism'.

Note that to maintain the delusion you must ignore facts like:

a) countries with their national balance sheets currently in the black

b) the only government in north america to run 17 surplus budgets

Once you achieve this cognitive dissonance (level:epic) quips like "Socialists always run out of other people's money" can be universally slapped on everything and anything you don't agree with, using ZH's patented version of Godwin's Law, regardless of reality.

Thu, 09/27/2012 - 13:01 | Link to Comment akak
akak's picture

GoinNowhere: doing his part to preserve the myth of benevolent statism.

(With classic Canadian sanctimony, arrogance and nationalistic insecurity.)

Thu, 09/27/2012 - 13:15 | Link to Comment GoinFawr
GoinFawr's picture

Don't you have some hypocritical 'Divine right of Kings-if it is to my benefit' rationalization to go fawn over?

 I offer current facts and historical record, not legends or wishful thinking. That's your dept.

Regressive 'statists' like yourself still expect something from your governments;  mostly protection for the status quo under the guise of 'liberty'. You define 'cognitive dissonance'.

Thu, 09/27/2012 - 13:20 | Link to Comment akak
akak's picture

Your gibberish is worthy of AnAnonymous himself.

I'm surprised you didn't condemn me for my obvious "US Citizenism eternal nature".

Now, go slap a red maple leaf on some Canadian facsimile of a US product and beat your chest in pride.

Thu, 09/27/2012 - 13:35 | Link to Comment GoinFawr
GoinFawr's picture

If I agreed with you then we would both be wrong.

Dig the fat out of your ears and you'll find that the truth might not sound so much like 'gibberish' after all.

Thu, 09/27/2012 - 16:01 | Link to Comment supermaxedout
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Weidmanns Heil !

This is a correct greeting in Germany when hunters meet.   Weidmanns Heil, Hallali and Hallala

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