The Bundesbank picked up the ball with a statement that certainly won't earn him a promotion there any longer:
The Executive Board of the Deutsche Bundesbank distances itself categorically from discriminatory remarks made by its member, Dr Thilo Sarrazin. Dr Sarrazin, a former member of the Berlin Senate, has repeatedly and persistently made provocative statements, especially on issues relating to immigration. These statements have no connection the tasks to the Deutsche Bundesbank (sic!) In making such remarks, Dr Sarrazin is not expressing the opinions and views of the Deutsche Bundesbank...
In his statements, Dr Sarrazin has been breaching this obligation repeatedly and to an increasingly serious extent.The rest of the release deals with technical matters that delay an immediate booting.
It is an urgent matter, though. Central banks at the heart of the financial crisis are likely to be reviewed by parliaments when the current crisis will finally have unwound in an unorderly manner as in all other crises before.
German's best-selling daily "Bild"fired a big-letter "Last Warning Shot for Sarrazin" with other media busy reporting the sharp rebuttals from official Germany and background pages on scientific facts that tore up Sarrazin's thesis in mid-air. 2000+ German media reports have been rarely unified in asking for the political self-hygiene that has worked so well since 1945 in Germany.
In short for markets: He will go after stirring up Germany's darkest chapter. Bundesbank remains independent.