Seeking Alpha

"The crisis has laid bare structural shortcomings [that] require structural solutions,"...

"The crisis has laid bare structural shortcomings [that] require structural solutions," Bundesbank head Jens Weidmann tells economists in southern France, adding that "monetary policy … cannot solve the crisis." Weidmann also says "sovereign default [should be] possible without bringing down the financial system," and suggests that allowing banks to assign a zero risk-weighting to all sovereign debt regardless of its origin reinforces the pernicious link between banks and their governments.
Comments (5)
  • D_Virginia
    , contributor
    Comments (2277) | Send Message
    But any reasonable structural changes would hurt banks' profits and woul have to be instituted by politicians, who are owned by banks, so....


    If you follow the money, and the logical cause and effect related to it, it's really hard to see a viable path to sensible structural reform. :-(
    7 Jul 2013, 12:58 PM Reply Like
  • justaminute
    , contributor
    Comments (1226) | Send Message
    "require structural solutions" - meaning the policies we promoted and put in place have been wrong.
    7 Jul 2013, 01:41 PM Reply Like
  • dragos2901
    , contributor
    Comments (74) | Send Message
    Exactly! And yet the Fed still carries so much weight. And the ECB. And the BOJ. But finally somebody with the guts to say it out loud.


    My takeaway from this- don't let economists run the show.
    7 Jul 2013, 02:10 PM Reply Like
  • nemonemo
    , contributor
    Comments (334) | Send Message
    You mean socialism failed. BHO is promoting same in USA.
    7 Jul 2013, 03:48 PM Reply Like
  • Road Running
    , contributor
    Comments (36) | Send Message
    there's a link between banks and their respective Governments? really?
    7 Jul 2013, 07:34 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs