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Eurocrash: the Wackelkandidaten shall inherit the earth
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"I have to tell you I resent having to find out about the fate of this country by reading German newspapers", writes Mary Ellen Synon, in the Wail's clog. One knows how she feels. The fact of the matter, though, as we had begun to realise as early as June, is that is where the debate is happening, with the English press standing on the sidelines, obsessed with other matters. Even today (or especially today) it continues, with the latest instalment of the Weidmann versus Draghi spat making the weather in Handelsblatt. And it's not looking good for Weidmann, the paper says. Read here... http://www.eureferendum....ogview.aspx?blogno=83101Edited by user 30 August 2012 12:42:13(UTC)
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This from the DT yesterday Quote:Mr Monti recently said that the move to grant the ESM a banking licence would "in due course occur". However, Mario Draghi insisted at the last ECB press conference that the ESM would not be a "suitable counterparty that is eligible for central bank financing". The ECB outlines its reasons here.
Mrs Merkel says she agrees with Mario.
Draghi, that is, not Monti.
"It is not compatible," she insists. So the ECB does not want a banking license for the ESM to enable it to buy bonds, it appears Merkel agrees with Draghi on that.Id bet Weidmann is happy with that state of affairs also.They are singing from the same hymn sheet so far on large scale debt mutualisation.Draghi is maybe not as keen on monetising debt as he has been made out to be. As far as the ECB issuing the bonds itself is concerned they may have hinted they will,but I reckon it would be very limited even if they do resort to it.Draghi is bluffing the markets.Angela has not backed down yet on anyone(or any institution) issuing joint debt on behalf of the EZ...and I doubt she will. Edited by user 30 August 2012 13:25:10(UTC)
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Originally Posted by: vincent  This from the DT yesterday Quote:Mr Monti recently said that the move to grant the ESM a banking licence would "in due course occur". However, Mario Draghi insisted at the last ECB press conference that the ESM would not be a "suitable counterparty that is eligible for central bank financing". The ECB outlines its reasons here.
Mrs Merkel says she agrees with Mario.
Draghi, that is, not Monti.
"It is not compatible," she insists. So the ECB does not want a banking license for the ESM to enable it to buy bonds, it appears Merkel agrees with Draghi on that.Id bet Weidmann is happy with that state of affairs also.They are singing from the same hymn sheet so far on large scale debt mutualisation.Draghi is maybe not as keen on monetising debt as he has been made out to be. As far as the ECB issuing the bonds itself is concerned they may have hinted they will,but I reckon it would be very limited even if they do resort to it.Draghi is bluffing the markets.Angela has not backed down yet on anyone(or any institution) issuing joint debt on behalf of the EZ...and I doubt she will. I saw that in the failygraph, but could not find reference to it elsewhere. On the basis of a single report - which runs counter to what we know - I'm not prepared to go with that, especially given the known fallibility of the source.
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It sounds logical to me though.Draghi always claimed he was not a "soft money" advocate,so maybe we shopuld take him at his word.In addition Germany is the one setting the agenda as far as I see it,Draghi would never overcome German reticence to print to save the euro and would be on a losers wicket if he tried. Merkel wants to save the EZ the hard way, or as she likely sees it the only realistic way through market reform and sticking to budgetary rules .Draghi has always kept to that script too.He has been getting involved politically telling everyone they have to stick to the rules of the fiscal pact targets or else. The FT did a piece a while back saying that Merkel will use the ECB to break the rest of the EZ to her will....Ive seen nothing to change my view on that. Edited by user 30 August 2012 13:42:13(UTC)
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"As an advocate of a consistent stable exchange German tradition Weidmann is not tired, put his finger in the wound".My guess would be: ...Weidmann is trying to stop the bleeding. 
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Found this on bloomberg http://www.bloomberg.com...-strong-euro-anchor.htmlQuote:
Draghi seems to suggest here that his critics are somehow anti-European,” said Christian Schulz, senior economist at Berenberg Bank in London. “There has been a lot of deliberate misleading by politicians in Germany about what the ECB is doing and also about what the future of the euro is.”
I think somehow this is all being portrayed in Germany as the ECB versus the Bundesbank/Merkel when it isn't.Draghi has promised nothing directly yet till his minions come up with a detailed plan on Sept 6....bond buying has not been ruled in or out and he says he wants to use other tools at his disposal as well.If it does allow bond buying they will be very much conditional on any beneficiary sticking to tight fiscal rules.....i.e German fiscal rules. Quote:Draghi said the ultimate goals that the euro was founded on were stability, prosperity and peace. “We know this is what the people in Europe, and in Germany, aspire to.” Draghi highlights Germany there,knowing how this is being presented he wants to reassure Germans that this will be done prudently. I also recall Draghi commenting he was more "German" when it came to monetary policy and he is well aware of German worries on that front. Edited by user 30 August 2012 17:36:31(UTC)
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Originally Posted by: AlanC "As an advocate of a consistent stable exchange German tradition Weidmann is not tired, put his finger in the wound".My guess would be: ...Weidmann is trying to stop the bleeding. I think it's more like "Weidmann relentlessly touches on this sore point". Translations for terms like "Wackelkandidat" can sometimes be found in Linguee which is a database of bilingual texts rather than a dictionary: http://www.linguee.de/de...amp;query=WackelkandidatThere's also LEO: http://dict.leo.org/ende...mp;search=wackelkandidat
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