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