From Here
"Volkswagen could face trouble funding leasing deals on new car as the European Central Bank (ECB) threatens to refuse to buy the loans that finance sales of its cars. The ECB declined to comment on claims it has put a temporary ban on buying VW's asset-backed securities debt backed by car loans"
So VW is packaging up car loans for purchase by the ECB? WTF? IMHO this is outrageous. The European Central Bank is getting involved in a commercial transaction, effectively printing money to buy loan books from VW. That's like the Bank of England directly financing Jaguar, say.
Or am I missing something?
Grand theft Labour
1 hour ago
8 comments:
I don't know if that is true, but the ECB is a genuinely "independent" central bank and can do whatever the fuck it wants to do.
For example, declaring Greek banks solvent but refusing to provide liquidity ;)
R Preciseley. Bent as a fucking staple. Cronyism Rules OK. It's rotten to the core.
Yes, outrageous.
Eh, uh, what?
Blimey.
No wonder cars have been getting so expensive.
Ah, so while we were all thinking that behind all the guff surrounding the creation of the euro and the ECB were the federalists, it turns out that behind them were German manufacturers after soft loans.
In 1997 I visited the Nissan factory in Sunderland as a schoolkid. The manager we saw there gave us a list of all the grants handed out to car manufacturers (as we were asking about the one Nissan got). It struck me that Mercedes were getting some awfully big ones from the EU. When I asked him about this he just casually exclaimed.
"Well Mercedes run the EU."
SL. Hah! (And, crikey, you're just a sprog! Last time I went to 'school' it was 1969....).
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