ECB's Weber "I see no credit crunch in Europe"; "no need to support lending"

Discussion in 'Wall St. News' started by makloda, May 12, 2009.

  1. Gotta love this guy :cool:


    May 12 (Bloomberg) -- European Central Bank Governing Council member Axel Weber said he sees “no need” for the ECB to buy further private assets to support lending.

    “I currently don’t see the need for outright purchases of further private debt obligations,” Weber said in a speech in Munich today. “There is no credit crunch in the euro area; therefore, there is no reason why we should surpass the banking system with our monetary-policy instruments.”

    ECB policy makers have been split over the best response to Europe’s deepest recession since World War II. Athanasios Orphanides, the former U.S. Federal Reserve economist who now heads the Cypriot central bank, led the push for the ECB to engage in asset purchases. Weber opposed the idea, in a position shared by ECB Executive Board members Juergen Stark and Lorenzo Bini Smaghi.

    “With the measures adopted so far, an exit from the policy of generous liquidity provision is still relatively easily possible,” Weber said. The ECB “will drain the provided liquidity as quickly as possible once the economic environment brightens.”
  2. LOL !!!!!!!!!! Dementia has different forms...Most probably he does not see 6 % GDP contraction in Germany, too. Maybe he should ask Opel workers about funding shortages. They certainly will sing him a song....:p :p :p
  3. "Look into my eyes, look into my eyes, the eyes, the eyes, not around the eyes, don't look around my eyes, look into my eyes, you're under, there's no credit crunch in Europe, no credit crunch". He sort of even looks like the hypnotist guy...

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    For all you Little Britain aficionados...