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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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.

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!

 

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!

Popo's picture

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

Spastica Rex's picture

It's like Madonna or Bowie reinventing themselves.

Well, not really.

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.

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

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

forwardho's picture

MDB, brevity is the soul of wit.  Your irony is beautiful ( and yet also completly tragic).

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.

The trend is your friend's picture

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

slaughterer's picture

WEIDMAN SAYS DRAGHI MUST BE STOPPED FROM HIS MADNESS

saturn's picture

Nur mit ein scharfes Messer!

slaughterer's picture

WEIDMAN SAGT "ICH LESE ZERO HEDGE UND TYLER DURDEN HAT VOLLIG RECHT: MOARER QE IST KEINE LÖSUNG."

holdbuysell's picture

"*WEIDMANN: MUST ENSURE PEOPLE DON'T LOSE TRUST IN CENTRAL BANKS"

Too late. You're fired.

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

LongSoupLine's picture

I'm buying German products in support of Weidmann...first stop, beer purchase.

slaughterer's picture

German beer is over-rated: stick with the domestic craft beers from San Diego. 

LongSoupLine's picture

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.

slaughterer's picture

OK, support Germany, if you want.  I would take a Stone "Ruination" IPA over a Jever Pils any day.   

Village Smithy's picture

Stihl chainsaws do it for me.

DavidC's picture

WEIDMANN SAYS BANK UNION SHOULDN'T COVER EXISTING BAD DEBTS

Duh...

DavidC

Sudden Debt's picture

WEIDMANN SAYS THIS

WEIDMANN SAYS THAT

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

disabledvet's picture

He says nein to nein apparently...

RSloane's picture

Relax! He'll probably face_plant off a cliff onto a rocky outcrop in some mysterious hiking accident.

holdbuysell's picture

Watch what they DO, not what they SAY.

Sudden Debt's picture

Always listen to the experts.

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

Then do it - Robert A. Heinlein

Comay Mierda's picture

its just political posturing

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

swissaustrian's picture

Yes he bailed them out in 2008/09, too.

RSloane's picture

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

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.

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)

Diesel Seven's picture

I agree, but petro will get mightily expensive in drachmas, lire or pesetas.

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."

Terp's picture

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

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.)

Quinvarius's picture

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.

WaEver's picture

WEIDMANN PISSES IN DRAGHI'S PUNCH BOWL

Quinvarius's picture

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.

MillionDollarBoner_'s picture

"When things get really bad, one has to lie"

NEOSERF's picture

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".

Quinvarius's picture

Bank reserves are not an inflationary reservoir.  They are an inflation multiplier.

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.

 

BrigstockBoy's picture

Send in the clowns...

Vince Clortho's picture

Weidmann says  "I still believe people trust the Central Banks"

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

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...

caimen garou's picture

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"

Remington IV's picture

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

q99x2's picture

*JAW WEIDMANN BONE"