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Eurointelligence Daily Morning Newsbriefing: Weidmann seeks to sabotage banking union (28.09.2012)
Bundesbank president insists that any bank legacy problems must remain the liability of national regulatory regimes; says anything else - i.e. the explicit commitment by the eurozone summit in June to separate banking and sovereign risks - constituted a financial transfer; Weidmann also says bank supervision will destroy the ECB's independence and deflect from its price stability goal; the coalition majority also asked the government to ensure that legacy risks are not covered by a banking union; the Spanish cabinet passed the 2013 budget with the ludicrously optimistic assumption of a GDP fall of only 0.5%; measures include a cash-for-clunkers scheme, and loads of new taxes; Mariano Rajoy said he would only apply for a programme if interest rates were too high for too long; he describes Spain's predicament as a "fascinating situation"; an FT editorial says Spain should apply for a bailout immediately, but says eurozone imperatives may be inconsistent with Spanish politics; Ambrose Evans-Pritchard sees a German betrayal of Spain; the capital flight from Spain intensified during August; the eurozone economic outlook deteriorated further in September, according to the latest confidence survey by the European Commission; ECB data show a big contraction of lending to households; Reuters has the ESM guidelines, indicating the lending margins - with no discrimination between countries, only instruments; there are renewed signs that Mario Monti may end up heading the next Italian government - if there is no clear winner; 46% of young Italians are economically inactive; Berlusconi describes the euro as a con, and calls on the ECB to print more money; the Greek coalition agreed on a €13.5bn austerity package, with €10.5bn in savings, and the remainder in higher taxes; most of the savings come from cuts to wages, benefits and pensions; Jean-Marc Ayrault stands by his 2013 growth and deficit forecasts ahead of today's presentation of the budget; in Austria, meanwhile, a eurosceptic billionaire has launched his parliamentary campaign, with a big boost from the polls.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Fri Sep 28th, 2012 at 05:20:48 AM EST
[ Parent ]
when even Berlusconi makes sense:
Berlusconi attacks the Euro again

Silvio Berlusconi has called the Euro a "con," Il Fatto Quotidiano reports. He called the converion rate of 1,927 lire to the euro suicide. Due to its past, Germany is blocking every plan to save Eurozone with a monetary base increase. "The Bundesbank and Merkel have their roots in the terror of inflation," and because of this the only mandate of the ECB is that of fighting inflation. According to Berlusconi, Eurozone has two ways: the first is to start the money printing machine, the second is consider a German exit from Eurozone if Berlin continues to oppose the ECB as lender of last resort. "Germany is killing Italy, but also Eurozone," he added.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Fri Sep 28th, 2012 at 05:26:19 AM EST
[ Parent ]
Berlu will say anything in order to weasel his way back into power. Beware.

They tried to assimilate me. They failed.
by THE Twank (yatta blah blah @ blah.com) on Fri Sep 28th, 2012 at 07:23:13 AM EST
[ Parent ]
Eurosceptic billionaire starts Austrian election campaign

Eurosceptic auto parts magnate Frank Stronach launched his Austrian election campaign on Thursday, presenting himself as an honest man of the people to a public tired of corrupt politicians and hungry for change, Reuters reports. Despite a lack of clear policies and confusion over his attitude to the crisis-hit euro, 40% of Austrians already want to see Stronach's party - Team Stronach - in the next coalition government, according to a survey published in Der Standard. Recent polls show that Stronach would be the first choice of around 10% of Austrian voters, mainly at the expense of former supporters of the far-right Freedom Party and the alternative Pirate Party, which attracts a protest vote. Stronach reiterated his call for giving each member of the euro zone its "own" currency whose value would fluctuate in line with its fiscal and financial strength. He emphasised that as a child of war he was in favour of a united Europe to maintain peace on the continent, but would resist being dictated to by Brussels, Washington, Beijing, Moscow or anyone else.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Fri Sep 28th, 2012 at 05:28:48 AM EST
[ Parent ]
Apparently he collected three parliamentarians of Haider's old outfit and one from the Social Democrats.
The official launch mostly consisted of him talking a lot.

Pros: He blames the banks bad investments and not lazy southerners. "Angela Merkel is either utterly stupid or in cahoots with the banks", "What is being forced on Greece..".
He is in favour of an orderly disintegration of the Eurozone, which compares favourably with the current policy of years of depression followed by disorderly collapse. No outright bashing of poor people as far as I can see.

Cons: Utter ignorance of Macroeconomics. "For 50 years we have been making losses" The pension system is supposedly close to collapse because of state debt. Also Bureaucracy!1!eleven. The state as a corporation.

Notes: He may not be a bad sort for douchey rich people but he is very old and his ego is the size of Jupiter. That is not a good combination and I give him about a 50% chance to crash and burn before the election.

by generic on Fri Sep 28th, 2012 at 06:53:07 AM EST
[ Parent ]
Reuters (via Chicago Tribune): Bank union won't absorb old risks: ECB's Weidmann (September 27, 2012)
"Anything else would be a financial transfer and those should be made transparent and not hidden under the cloak of a banking union," he said. "The primary goal of a banking union cannot be the sharing of risks."

Earlier this week, a deep divide opened between the bloc's fiscal conservatives - Germany, Austria, the Netherlands, and Finland - and its more needy partners when the four nations said that a clear line needed to be drawn between new and "legacy" difficulties that could be shouldered by the euro zone's permanent rescue fund, the ESM.

The new position, which appeared to unravel much of the bank recapitalization plans agreed at the last European summit in June, made it clear that highly indebted banks in Spain, Ireland and Greece will remain the responsibility of those countries' governments.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Fri Sep 28th, 2012 at 09:32:11 AM EST
[ Parent ]

  • "We can have a banking union, but it mustn't be a banking union!"

  • "I will not allow my central bank to perform a primary function of a central bank."

  • "I refuse to solve this problem!"

sapere aude
by Number 6 on Fri Sep 28th, 2012 at 09:48:11 AM EST
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i am extremely well remunerated to reiterate insane drivel until i disappear below the waves.

a titanic orchestra, 1-2-3, 1-2-3, gurgle gurgle...

it also reminds me of someone holding two shorting cables in their hand and the juice paralysing their nervous system.

one cable being the 'markets' (those b-a-d speculators, gambling for the shirt off europe's back, and cog-diss alert the other cable being that these scary scary 'market forces' are nothing more than granma's portfolio managers trying to keep her savings from becoming extinct!)

it's the same fucking money, but instead of going round and round, the institutions are creaming so much off the top and being fear-based anal retentives, are hoarding offshore. it's all reactionary, reflexive.

this farce cannot but further descend into tragedy, unless the blocks and backchannels are removed and money can serve its proper function by circulating within the financial system, all the way through down to the bottom where it's most needed.

too many clever-clever monkey games.

so totally unnecessary for a sane society, useless as tits on a bull...

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Fri Sep 28th, 2012 at 04:12:15 PM EST
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