However, as with any insurance policy, one would have to make sure in this case, too, that the insurance does not cover losses which have already occurred, like bad loans already on banks’ books, and that the insurance does not encourage careless behaviour in the future.
You have bailout fatigue in Germany and austerity fatigue in Greece. Do you worry about the strain this situation is putting on the compact between democratic leaders and their populations? 2  BIS central bankers’ speeches  We are living in democracies and we have to fully respect their functioning.