What is a European bank to do, but to help inflate the sovereign debt bubble and pray?

Sir, I refer to Claire Jones and Ferdinando Giugliano reporting “Draghi signals imminent action to combat eurozone inflation” May 9.

So what is a European bank to do if there is more liquidity, the ECB pays nothing on deposits, and it has no capital to meet the capital requirements for lending to anyone else but to sovereigns? It has no choice but to help to inflate the sovereign bubble… and of course join whole Europe in prayers for that these central bankers know what they are doing.

As you know... since they do not understand that risk-weighted capital requirements for banks creates huge and dangerous distortions in the allocation of bank credit, at least I do not think they do know what they are doing.