Bankers Fear Auto Sector Imploding Globally, with ‘Green’ Electric Cars Driving into the Red
Nov. 30, 2019 (EIRNS)—Central bankers are apparently panicked about the effects of the “global downturn” of the economy on the already-collapsing financial system. Audi laying off 9,500 workers, China cutting to zero subsidies for electric cars, the ECB buying Daimler bonds directly at emission—this, along with statements by ECB Deputy President Luis de Guindos and Estonian central bank governor Madis Müller, raises the question whether there is an implosion of the auto sector going on and the ECB is ready to do the unthinkable to prevent it, including buying stocks!
On Nov. 16, Müller, who is also on the ECB Governing Council, told students at a Bundesbank event in Frankfurt, saying that “currently we are doing unconventional things. And you should obviously imagine even more unconventional things, if the situation gets really bad,” i.e., if the economic situation of the Eurozone deteriorates further in a significant way.
De Guindos for his part, stated on Nov. 21: “A downturn of the economic situation in the Eurozone could crush values of riskier and less liquid assets, as market players such as asset managers and hedge funds would sell at great speed.”
“Are we on the edge of the implosion of the entire global automotive sector, a real manufacturing Armageddon?” asks Italian financial analyst Mauro Bottarelli on IlSussidiario.net. In his view, China has understood that the electric car is a bubble—apparently nobody in China is buying them—and has decided to get out, letting Tesla and the Germans, which invested €100 billion to make the entire auto sector “environmentally compatible,” out in the cold.