I am concerned about this decision: (1) http://www.guardian.co.uk/world/2012/sep/09/german-judges-to-rule-on-euro-fate (2) http://online.wsj.com/article/SB10000872396390444273704577637551044588254.html What time is this decision due in terms of the eastern US? I'd like to not be in the market during those hours and have no positions. Or is it just expected at some time during the day? I googled, but most articles just say "September 12th." Frankfurt is 6 hours ahead, so 9am there is 3am here, and 17:30 is 11:30 AM. I do not want to be near the market any which way it goes until the market digests the news.
It isn't known and, in fact, there has been speculation that the decision will be delayed (due to the conflict of interest issue with one of the justices).
The plot thickens... Gauweiler (a backbench MP) has filed a new Constitutional Court complaint on the back of the ECB decision. Decision expected tomorrow. Hopefully, shouldn't derail the main deliberations the result of which is expected on the 12th.
What's the court decision about exactly ? The PIIGS bailout program ? And what about the legality of the ECB bond purchases announced last week ?
The original court decision that's expected on the 12th is about the legality of the ESM. The new emergency complaint, to be decided on tomorrow, is related to the ECB bond purchases.
OK, I don't understand how the ECB can buy bonds the way it says it will do. Doesn't its chart prevent such operation ? What's Super Mario 's trick to get around this ?
The framework under which the ECB operates is somewhat vague. The ECB has described its bond purchases as "monetary policy", which makes it legal. The German lawsuit is disputing that.
When Trichet was ECB head, he said things like, "can't ________", "won't _________", "not allowed in our charter", "no mandate for _______". Apparently Draghi has come around to the American way of doing things and Bernanke's way of thinking... that is, SCREW THE LAWS... DO WHATEVER YOU WANT... NOBODY WILL HOLD YOU ACCOUNTABLE. So... to alleviate the sovereign debt situation in Europe, Draghi will print money and buy sovereign debt the rest of the world won't.... same as Bernanke. I don't know what the German vote has to do with all of this.. perhaps in a practical sense, nothing at all.
Huh? The first bond-buying programme, the SMP, was introduced by Trichet in August 2011. So this Trichet vs Draghi idea is rather misguided.