domingo, setembro 09, 2012

ECB diverges from Bundesbank orthodoxy

Quite rightly,  "... Germany will have to buy their bonds regardless, in order to finance the purchasing of their over produced products..."
Saw one American blogger  compare the Eurozone to a giant "vendor-financing scheme" for the surplus countries' products.
That's may be why the Bundesbank allowed German banks to become the most overleveraged of Europe.
If  the central bank had been "more prudential" and if  the excess leverage  had been judged by the Karlsrhue court as "unconstitutional", we might never have gotten into this debt mess.