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They Just Learned The OMT Still Has No Legal Term Sheet

Tyler Durden's picture


Moments ago, the following headline hit the tape:


That's right: the ECB is trying to get the German Constitutional court to pass the OMT (i.e., On Merkel's Tab) bond purchasing program, and yet there still is no legal term sheet.

The photo below captures the reaction by the Karlsruhe Kardinals upon hearing this unmitigated idiocy.


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Tue, 06/11/2013 - 08:25 | 3645405 medium giraffe
medium giraffe's picture

This calls for some 11th hour backroom fudge.

Tue, 06/11/2013 - 08:34 | 3645436 Groundhog Day
Groundhog Day's picture

Np plan b huh draghi

Tue, 06/11/2013 - 08:37 | 3645446 aint no fortuna...
aint no fortunate son's picture

geesh, what's a few minor details?

Tue, 06/11/2013 - 09:14 | 3645581 NoDebt
NoDebt's picture

They need to pass it so they can know what's in it.

Credit to Nancy Pelosi.  I thought she was just a dingbat when she said that, but now I understand she's a freaking genius.

Tue, 06/11/2013 - 09:56 | 3645753 Cognitive Dissonance
Cognitive Dissonance's picture

"(Legal) rules? We don't need no stinking rules. Rubber stamp this mother f**ker or we'll destroy the world........starting with you Germans." - Draghi

Tue, 06/11/2013 - 09:34 | 3645658 SafelyGraze
SafelyGraze's picture

go ahead and pass it so they can see what's in it



Tue, 06/11/2013 - 10:11 | 3645860 indygo55
indygo55's picture

OT Is it just me or does anyone else get the advertisements for CenturyLink "PRISIM" services?

Tue, 06/11/2013 - 08:54 | 3645500 Element
Element's picture



FRC (Fat Rich Cunts) - The Screaming Jets

Tue, 06/11/2013 - 09:04 | 3645539 Sudden Debt
Sudden Debt's picture



Tue, 06/11/2013 - 08:46 | 3645471 Haus-Targaryen
Haus-Targaryen's picture

If the court approves this without the text -- it looses all credibility.

Tue, 06/11/2013 - 10:06 | 3645792 Cognitive Dissonance
Cognitive Dissonance's picture

Ultimately the court is there to legitimize the power behind the court, even if that means preverting "justice" or losing credibity. Even the worst banana republics have banana supreme courts.

Tue, 06/11/2013 - 10:44 | 3646018 DeadFred
DeadFred's picture

There is a lot of justifiable hand wringing about the NSA tapping domestic phones and computers. Just remember that the vast majority of what they monitor is still foreign. My guess is that Carlyle owned Booz Allen might have 'inadvertently' recorded the communications of some German court justices. If so one has to wonder, what does the Carlyle Group want the decision to be? Similarly why did SCOTUS Chief Justice Roberts seemingly change his mind about Obamacare at the last minute. Why did the Cyprus and Greek parliaments okay the gutting of their countries? ...

This is very fertile ground for us paranoids.

Tue, 06/11/2013 - 11:11 | 3646137 Cognitive Dissonance
Cognitive Dissonance's picture

"This is very fertile ground for us paranoids free thinkers."

Fixed it for you.  :)

Tue, 06/11/2013 - 14:01 | 3646883 DeadFred
DeadFred's picture

Thanks. My bad

Tue, 06/11/2013 - 08:47 | 3645474 Stoploss
Stoploss's picture

DUH,   you have to pass it, to find out what's inside...

Even Nancy knows that.

Tue, 06/11/2013 - 13:55 | 3646857 JimBowie1958
JimBowie1958's picture

To be fair, she probably passes a great many things without knowing whats in them.

But enough talk about her private sex life.....

Tue, 06/11/2013 - 11:34 | 3645794 Azannoth
Azannoth's picture

The Legal Text? Ummm the dog ate it .. sorry you just have to make without

Tue, 06/11/2013 - 08:25 | 3645406 insanelysane
insanelysane's picture

Taking one from the Pelosi playbook:  You've got to declare it Constitutional to find out what the terms are.

Tue, 06/11/2013 - 08:27 | 3645416 fonzannoon
fonzannoon's picture

nice job!

Tue, 06/11/2013 - 08:27 | 3645410 GMadScientist
GMadScientist's picture

They out-Hanked Hank!

"Okay, Cardinals, one of you has a pink slip in your hat..."

Tue, 06/11/2013 - 08:26 | 3645412 kaa1016
kaa1016's picture

Is it me or does it seem like things all over the world are spiraling out of control? This should be a fun summer in the capital markets, especially if you love volatility.

Tue, 06/11/2013 - 08:27 | 3645417 GMadScientist
GMadScientist's picture

Perhaps you're just confusing the capital markets with the world?


Tue, 06/11/2013 - 08:33 | 3645434 insanelysane
insanelysane's picture

If the Germans go along with this farce, then yes, the Western World is officially out of control.

Tue, 06/11/2013 - 09:32 | 3645653 Cojones
Cojones's picture

First this and then PRISM, better not piss off the Germans. Everybody knows what happens when you piss off the Germans. 

This time, however, I'd be on their side.

Tue, 06/11/2013 - 09:09 | 3645557 Aurora Ex Machina
Aurora Ex Machina's picture

I'll provide this for the scientists / rational beings in the room. Northern Climate Artic super systems could be broken.


This is a Bad News[TM] type deal.

Tue, 06/11/2013 - 09:16 | 3645582 medium giraffe
medium giraffe's picture

Atlantic conveyor looks broken too.  That's deep shit.


Sea ice:

Tue, 06/11/2013 - 09:24 | 3645614 SmallerGovNow2
SmallerGovNow2's picture

Interesting stuff but what's it all mean?

Tue, 06/11/2013 - 09:28 | 3645636 medium giraffe
medium giraffe's picture

Hope you like hurricanes and methane.

Tue, 06/11/2013 - 09:37 | 3645673 Urban Redneck
Urban Redneck's picture

And magnetic (pre-GPS) compasses acting possessed.  

Tue, 06/11/2013 - 10:04 | 3645827 Non Passaran
Non Passaran's picture

That's bullshit, the methane hoax was busted in subsequent research.

Now go to some leftie climate conspiracy site.

Tue, 06/11/2013 - 10:50 | 3645881 medium giraffe
medium giraffe's picture

Whew! Thank goodness you came along just in time with your expert opinion to refute all of the data from the US Energy Dept, JPL, Cambridge University etc.  I'll certainly take the word of a bigot in the comments section on a blog site over, say, actual scientists.

Finally I'll be able to sleep soundly.  +1, well done! That was a close one! 

I'll get in contact with these guys and let them know straight away:

I'm not sure how hard science has any particular political leaning though.  Curious....

Tue, 06/11/2013 - 14:54 | 3646892 JimBowie1958
JimBowie1958's picture

 I'll certainly take the word of a bigot in the comments section on a blog site over, say, actual scientists.

Then you are an ignoramus for not knowing that there are actual scientists that think AGW is bullshit, the methane scare is bullshit, and climate change science totally discredited and shanghaied by neoMarxist radicals looking for any excuse to give government absolute control over our everyday lives.

Even the NYT says there has been no warming for 15 years  now.

And besides your bullshit premise, what the fuck makes the guy a BIGOT for disagreeing with you about climate issues?

Shit, now you're a racist or a bigot if you disagree with the leftwing hamster herd on ANY topic at all.

Tue, 06/11/2013 - 09:52 | 3645747 Urban Redneck
Urban Redneck's picture

The intersection of human time and geologic time is like a bad acid trip to Schrödinger's catbox, but what's going on beneath the surface?  Mo money ain't going to fix shit- and Wall Street bankers have fewer conflicts of interest and just as selfless concerns of the Apocalypse underling their cries for MOAR!


Tue, 06/11/2013 - 11:53 | 3646322 dtwn
dtwn's picture

Scientist here.  Very interesting, thanks for the links.  I read through the comments and found it quite refreshing that there was actually a civilized discussion taking place even though it appeared some posters disagreed on some points.  A lot of exchange of ideas and I didn't see politics brought into the discussion at all. 

Tue, 06/11/2013 - 14:08 | 3646916 JimBowie1958
JimBowie1958's picture

If we cannot survive some fairly small climate change, on the gelogical time scale, should we survive?

Why should humanity be the exception to evolution?

Tue, 06/11/2013 - 15:29 | 3647337 Urban Redneck
Urban Redneck's picture

an anthem for the protest

(or the flip side for the knowing)

Tue, 06/11/2013 - 08:26 | 3645413 fonzannoon
fonzannoon's picture

we have to pass the term sheet so we can find out what is in it.

Tue, 06/11/2013 - 08:28 | 3645418 shovelhead
shovelhead's picture


Great minds Fonz...

Tue, 06/11/2013 - 08:26 | 3645414 shovelhead
shovelhead's picture

"You have to pass it to know what's in it."

Got the Tee shirt.

Tue, 06/11/2013 - 08:28 | 3645419 GetZeeGold
GetZeeGold's picture



It's better just to wing it than put it down on paper....that way you won't get boxed in.

Tue, 06/11/2013 - 08:41 | 3645456 pods
pods's picture

I see they've played Calvinball too?


Tue, 06/11/2013 - 08:29 | 3645421 slaughterer
slaughterer's picture

A conscientious German bureaucrat like Asmussen (portrayed by Michael Lewis very accurately) should not be tolerating this let alone broadcast this, unless there is some other interest at play.

Tue, 06/11/2013 - 08:29 | 3645422 PaperBear
PaperBear's picture

It’s because they are making up the law as they go along.

Tue, 06/11/2013 - 08:32 | 3645426 SpanishGoop
SpanishGoop's picture

If there is no legal term sheet the court can't declare it unconsitutional can they?

There, they did it again.


Tue, 06/11/2013 - 08:37 | 3645448 falak pema
falak pema's picture

The ECB is using the famous invisible cloak we hear about for "coding" all digital messages, ultra secret. Those judges don't know how to undo the cloak, what oafs! 

Cloak and daggers! I think its those hidden daggers that scares the shit out of these judges.

"We don't want to be hung, drawn and quartered!" 


Tue, 06/11/2013 - 08:41 | 3645455 rehypothecator
rehypothecator's picture

So now we know how the Romulins made their cloaking device: They just wrapped their spaceships in copies of the OMT contract.  Poof! It's cloaked! Nothing to see here.  

Tue, 06/11/2013 - 08:52 | 3645494 DOT
DOT's picture

All laws are good laws if they are secret.


Tue, 06/11/2013 - 08:38 | 3645451 Gringo Viejo
Gringo Viejo's picture

Like the hats.

Tue, 06/11/2013 - 08:38 | 3645452 timbo_em
timbo_em's picture

Lemme guess: there will never be a legal term sheet because there is no legal ground for such madness. Thank god the new normal markets are run by an Apple I otherwise OMT would have never worked.

Tue, 06/11/2013 - 08:40 | 3645454 medium giraffe
medium giraffe's picture

Euro tanking.

Tue, 06/11/2013 - 08:43 | 3645462 Yen Cross
Yen Cross's picture

     The fed. is who is financing the bond buying in Europe. Tyler just put the foreign bank holdings chart up a few days ago. Foreign banks are holding  $1.2 trillion.

     I'm not sure how active the ECB has been directly buying bonds, but it sounds like they want to be ready if the Fed. starts to tighten. Draghi pulled a boner last fall when a reporter asked him (ECB press meeting) about the other bailout program the ECB concocted, and he said no plans had been drawn up for implementation. The ECB is a bunch of bullshite artists.

Tue, 06/11/2013 - 09:37 | 3645470 medium giraffe
medium giraffe's picture

Yep.  Remember everyone getting hot under the collar when it was reported that the Fed was pumping foreign banks in the states? 

Tue, 06/11/2013 - 08:44 | 3645463 exartizo
exartizo's picture

lol. funny Tyler(s).

Tue, 06/11/2013 - 08:48 | 3645479 Hayek FA
Hayek FA's picture


Lawless Bureaucracy! you cannot make this shit up.

Tue, 06/11/2013 - 09:18 | 3645598 astoriajoe
astoriajoe's picture

Apparently, they can. And they are.

Tue, 06/11/2013 - 08:52 | 3645495 butchee
butchee's picture

As Draghi said last week "It is the most sucessful monetary policy ever".....  How can it not even exist?  LOfuckingL!

Tue, 06/11/2013 - 09:36 | 3645672 Non Passaran
Non Passaran's picture

That's what he meant. It doesn't exist so it's UNPOSSIBLE that it ever fails.


Tue, 06/11/2013 - 08:54 | 3645505 Smegley Wanxalot
Smegley Wanxalot's picture

I think the legal term in german is Arschenficken.

Tue, 06/11/2013 - 09:01 | 3645523 Dr. Engali
Dr. Engali's picture

We really do have a bunch of retards running this joint.

Tue, 06/11/2013 - 09:18 | 3645597 NoDebt
NoDebt's picture

No, man, not like that.  They're all such super geniuses they give the APPEARANCE of retardation.  You just aren't smart enough to see the big picture they see.

Tue, 06/11/2013 - 09:11 | 3645566 Skin666
Skin666's picture

Is it me, or is this shit quickening up?

Tue, 06/11/2013 - 09:17 | 3645595 astoriajoe
astoriajoe's picture

I'm sure if the President just goes and gives a good speech or something he can settle it all down and we'll be green by lunch.

Tue, 06/11/2013 - 09:31 | 3645650 Azannoth
Azannoth's picture

So they are asking a Constitutional Court to give them a Legal Blank Cheque to do whatever the f*ck they want?! You can't make this shit up!

what's even more funny is they probably will get it..

Tue, 06/11/2013 - 09:43 | 3645717 Debugas
Debugas's picture

the legal text ? I knwo what is in there - just one word: SCAM

Tue, 06/11/2013 - 10:32 | 3645944 MarsInScorpio
MarsInScorpio's picture

They are now officially "Shameless" criminals.


No guilt, no conscience, no shame; the three attributes of a psychotic sociopath.


So it's true - the financial world is run by diagnosable psychotics.


Keep stacking. And stay off the radar. Buy out-of-town with a fake name and address. Keep a sunken boat somewhere waaaay offshore to buttress your story.


Don't tell any living soul about your stash. They are going to steal your PMs so don’t worry about going to jail for not reporting them – at least you’ll still have it when you get out; what will the rest of the debt-serfs have?


We are going to need to protect ourselves because nobody else will.


The low-info niche will get riled up when they have to cut the welfare payments. The seniors will get riled up when they have to cut health care and social security. The youth will get riled when . . . hmmmm, looking at Europe with its 65% unemployment, maybe nothing will get them riled up.


Could get very bloody.



Tue, 06/11/2013 - 10:42 | 3645997 fuckitall
fuckitall's picture

Surprised Draghi even needs German guarantee on bond purchases.  Fed doesn't need US govt guarantee on all the trash they purchase, they can say it's worth whatever they wana say it's worth, nobody's gonna question it.

Say goodbye to EUR and USD folks, both will be printed to oblivion.

Tue, 06/11/2013 - 10:39 | 3645999 Frastric
Frastric's picture

Should have photoshopped that picture to show their heads exploding!

Tue, 06/11/2013 - 13:37 | 3646762 trebuchet
trebuchet's picture

How can you have a term sheet on unlimited bond purchases?


Its outrageous to even suggest one should exist!





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