Bundesbanks Weber: "If that amount is not enough, we could increase it,"

Discussion in 'Wall St. News' started by ASusilovic, Nov 25, 2010.

  1. PARIS -- Germany's leading central banker said he believed European countries would be willing to increase their share of a 750 billion euro rescue program if it is depleted by further bailouts.

    Axel Weber, the head of Germanys' Bundesbank and an influential voice on the European Central Bank's governing council, told an audience in Paris that European countries would not allow speculators to undermine the euro and could always supplement their 500 billion portion of the program.

    "If that amount is not enough, we could increase it," Mr. Weber said. "An attack on the euro has no chance of succeeding."

    The comments are particularly notable because Mr. Weber has often voiced skepticism over Europe's efforts to prop up flagging euro zone members. Though he supported the effort to set up the bailout fund and served as a key adviser during its conception, he has been openly critical of other emergency initiatives, most notably the ECB's bond buying program.


    With the EUR at 1.3325 and the FED printing like there is no tomorrow...why not ? :p
  2. good for them
  3. "If that amount is not enough, we could increase it," Mr. Weber said. "An attack on the euro has no chance of succeeding."

    This type of arrogant attitude is exactly why the Euro is loosing ground amongst the other global currencies. When "no chance" is used, the realm of possibilty just opened up real wide. The alternative for the Euro currency is to take the temporary loss and fall in line with the rest of the world. As they are looking for new member states to back fill the fiscal gap. The inevitable realization will come that EU member states don't even speak the same native language. If South America were to have a common currency there would be less of a cultural divide and probably work.

  4. Uncle Axel is properly scared now...
  5. Wasnt the expensive Euro hurting any recovery possibility for the PIGS and should it have gone any higher hurting Western European export equally hard?


    Given the razor thin margins the Chinese have on their trade with Europe and the fact that Bernanke and co view a weakening USD as quintessential for a US recovery the Euro will find support at some time in the future.
  6. zdreg


    "the Euro will find support at some time in the future."
    this is the most hilarious statement of the year.:D :D :D :D
  7. EUR's problems are binary in nature. It's not about it getting stronger or weaker, but rather a question of whether it survives. At the rate the Eurozone officials are moving, I don't see it surviving, to be honest.

    At any rate, you, of all people, Debaser, should be aware of the risks, seeing as how you're living in Belgium?
  8. Isnt risk anywhere.... Be it Japan, The Eurozone or the US...

    Only 3 weeks ago after QE2 all the attention went to how it would surely and uterly trash the USD for once and for all.

    I am indeed from Belgium.

    The most unionized country in the world that has gone on strike more so then any other country in the world these last 40 years with indefinite benefits to asylum seekers or the unemployed, a debt to GDP level that has been above a 100% for decades now and a deeply divided populace speaking different languages and accounting for a broken political system that has left us without a government basically for over 3 years now.

    Yet despite all this the Belgian's economy managed to outperform many of it's stronger peers these last years and it's people maintains the highest proportional savingsrate of the entire Eurozone accounting for the highest household networth as well equalling as much as 200% of GDP.

    So you will have to forgive me having grown a bit sceptical over supposed unsustainability in economic matters having grown up in a country that pretty much defies all textbook economic principles.

    Don't get me wrong. I am of the opinion the world is experiencing something you could call economic winter with deep consequences to come as a result but where it will hit hardest is still open for debate I would argue despite what shorter term market action seems to indicate.
  9. Fair 'nuff, dude... I hear ya.