So long Herr Weber

ftalphaville.ft.com/blog/2011/02 … d-as-hell/

The CBs are in an inponderable position. Raise rates and expose the losses. Dont and grow more bubbles.

Fuck it if I could I’d have Pina Coladas on a beach over that any day.

Merkel abandons plan for German head of ECB - Derek Scally -> irishtimes.com/newspaper/fin … 23610.html

Herr Weber breaks ranks with his soon-to-be-former employers:
irisheconomy.ie/index.php/20 … ent-135877

From @Eoin, I’m presuming the original source is Bloomberg.

Seeing as he will be out of a job soon, perhaps we could find an opening for him? I think the NTMA could do with a shake-up…

Whats most interesting is that, with these views, *he *was the one who left.
Which tells me the remaining (and prevailing) views at the ECB are less than Irish-taxpayer friendly. :frowning:

Exactly - reasonable indication of what the remaining ECB consensus is.

At least Weber has put it out there in the open

Actually its worse than that. The politics of Weber’s bailing was murky at best at the time but in light of the catastrophic collapse in the standing of the current German government in the last few months it bodes very badly for the near future.

My best guess is that Weber is doing what a lot of people who saw the crash coming did in 2004-2006. Get out before they got engulfed by the inevitable train wreck. The fact that Weber has made known since in a very oblique way the reasons for his refusal to go to the ECB tell me that his decision was only for political reasons . That there are very serious problems in Berlin and Frankfort and that a very nasty crisis is brewing in Germany. The Germans have made no serious attempt to reform their banks since 2008 and it would take very little to precipitate a crises that would expose just how fragile the German banking systems is. There are many hundreds of billions of losses that have yet to be declared. The 100B for Hypo was only the down payment for the eventual cost of cleaning up the German financial sector.

The mood in Germany is getting pretty ugly. The flight to the fantasy politics of the Green by the skittish urban middle classes in Baden-Württemberg last week is just an indication of how serious the situation is. My real fear is that we may be seeing that start of “avocado” politics. Green on the outside, brown on the inside. Hope not, because if this is the start of a real trend then we are in for a very rough ride. Nothing more dangerous than self-righteous Germans engaged in ideologically driven fantasy politics.