Zero Hedge reports that French car maker Peugeot is in talks with the European Central Bank (ECB) about a three year >€1 billion loan.
This means that the (largely German funded) ECB is bailing out a (French owned) loss making car maker.
Germany probably paid for their ECB investments from taxes paid from their successful car making businesses like Daimler. Now that money is being spent propping up their competition.
The move bypasses the banking system and makes the ECB act like an investment bank instead of a central bank. This is ironic, because just a month ago companies like Peugeot were acting like central banks and bailing out the investments banks.
Meanwhile, Peugeot is busy trying to get French tax payers to pay for its R&D while it sells € billions of non-core assets to fund its investments in China and India.
The European financial system is now one big shell game, with everybody lending to everybody else and the money slowly disappearing, along with the jobs, to far off places like China and India.
No doubt they are driving German cars rather than French ones as they do it.
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