The equity market recouped some of yesterday’s loss as the entire trading day was position squaring ahead of the German Constitutional Court rendering its decision on the constitutionality of the ESM and the role of ECB moves to buy the primary issuance of European sovereign debt. There are many pundits trying to place probabilities on the court’s decision but I am not briefed enough in the BASIC LAW of Germany to even try to make that bold a prediction. To my mind, I will concentrate on the language the court uses and what position it takes in directing the German government to have to consent to the WILL OF THE PEOPLE. Will it direct the Merkel administration to return the issue to the Bundestag for approval of the new enhanced ECB “bailout” or will it suggest that the entire Maastricht Treaty needs to be approved by the entire citizenry through a REFERENDUM?
Posts Tagged ‘German Constitutional Court’
Notes From Underground: The GCC WILL ANNOUNCE AT 4:00 a.m. EST … Until Then, “ALL QUIET ON THE WESTERN FRONT”September 11, 2012
Notes From Underground: SCHAUBLE Says Spain On The Road To Salvation (IS 25% UNEMPLOYMENT REPENTANCE?)July 9, 2012
First, the U.S. unemployment report was soft although if the ADP stats had not caused the WALL STREET ECONOMISTS to revise their guesstimates upward, the NFP would not have been such a miss from the early consensus. The average hourly earnings were above projections and while MANUFACTURING JOBS were up only 11,000, it was not a negative number. Although it wasn’t a robust number, it certainly wasn’t a huge miss from projections.
Notes From Underground: Was Obama at the G-20? Is Soros daft? Was the G-20 Communique was Drafted By the OWS Scribe?November 6, 2011
In President Obama’s G-20 press conference the mood was somewhat upbeat as he boasted that the economic powerhouses had made progress on the issues of economic growth. The President also was confident that Europe can meet it challenges as leaving Cannes, he felt that a “solid foundation has been built.” It seems that Obama failed to capture the real mood of the FAILED G-20 meeting as the Financial Times had two very morose articles about the G-20 and a solution on the European debt crisis.
The unemployment report on Friday was much weaker than expected as zero net jobs were created. More disheartening was that average hourly earnings produced a negative number, which failed to confirm and support the earlier released personal consumption data. The equity markets went into risk-off mode as the economy went into the Labor Day weekend in a very fragile state.
In Monday’s Financial Times there is a column by Lawrence Summers, the GODFATHER of U.S. economic policy. Mr. Summers offers the Europeans a great deal of advice on “HOW TO SAVE THE EUROZONE IN THE COMING CRITICAL WEEKS.” The article is actually a good policy prospective if there was not the issue of politics that play a large and important role in the EU‘s inability to resolve its fiscal difficulties. Summers wants to believe that the EUROCRATS have the political mandate to negotiate Brussel’s desire for a peaceful, state-supported EDEN of entitlements.