Forex Flash: Bundesbank explains that the ECB is not the lender of last resort - Societe Generale

FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale notes that the Bundesbank has explained that the ECB is not the lender of last resorts to European governments.

More precisely, he adds that it explains how a country's fixed income market and lending system could start to price in the risk of that country leaving, without it necessarily being linked to a problem of monetary transmission, but linked to particularities of a given country (read make unsound decisions, populism.). He feels that the issue lies at the political level and not that of the mandate of the ECB.