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The battle between Mario Draghi and the Bundesbank continues, the Buba choosing today (24 hours...

The battle between Mario Draghi and the Bundesbank continues, the Buba choosing today (24 hours ahead of an ECB policy meeting) to publish on its website a late-June interview with bank President Jens Weidmann in which he says the ECB is "obliged to respect" and not overstep its mandate. "We have a greater say than many other banks in the EU."
Comments (4)
  • Pragmatic Bear
    , contributor
    Comments (89) | Send Message
    They account for 19% of the ECBs capital but only receive (like everyone else) 1/23 of the vote. Doesn't seem very fair.
    1 Aug 2012, 07:17 AM Reply Like
  • shild
    , contributor
    Comments (53) | Send Message
    Its not only Germany that will veto Draghi"s activist intentions but also the Netherlands and Finland, who will not allow the ECB to be dragged into bond-buying particularly when it failed the last times they tried it (take a look at Ireland, Greece) & it will fail again if they buy Spanish and Italian bonds. Not sure where France stands in this, but they are the next in line for a shock once Italy and Spain have been rescued.
    Question, whats the firepower the ECB would need -- is it a trillion euros or more for them to keep up a sustained bond-buying campaign over the next year?? And, say they do go ahead with the bond-buying, will the ECB get paid even if the rest of the bond-holders are given a haircut like in Greece (which means then that the other bonds in circulation become worth alot less since they paid get behind the ECB) ??
    Short the euro!!
    1 Aug 2012, 07:27 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
    If they think they can buy the bonds...they are then talking about 2-3 trillion worth.....printing...and then it really becomes a moral issue to.....all the buyouts go to the big spenders and vacationers....and the workers have to pay...not a good way to run a 17 member union
    1 Aug 2012, 07:41 AM Reply Like
  • shild
    , contributor
    Comments (53) | Send Message
    You are right, I guess the Germans (woking very hard) dont want to pay the (early retirement from age 50 thru 90) pensions and vacations and state workers pay (for no work) and unemployment etc for the lazy parts of the Euro area.
    Greece, Italy, Spain etc should first change their labor laws, retirement laws and get rid of the welfare state and its social mentality and then they can be rescued, because without geting rid of these items any rescue wont help and will be in-effective (and they will just come back with their hands-out for another rescue in a years time).
    Europe is truely in a great recession.
    1 Aug 2012, 12:00 PM Reply Like
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