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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medium giraffe's picture

This calls for some 11th hour backroom fudge.

aint no fortunate son's picture

geesh, what's a few minor details?

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.

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

SafelyGraze's picture

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



indygo55's picture

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

Sudden Debt's picture



Haus-Targaryen's picture

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

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.

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.

Cognitive Dissonance's picture

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

Fixed it for you.  :)

Stoploss's picture

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

Even Nancy knows that.

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.....

Azannoth's picture

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

insanelysane's picture

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

GMadScientist's picture

They out-Hanked Hank!

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

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.

GMadScientist's picture

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


insanelysane's picture

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

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.

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.

medium giraffe's picture

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


Sea ice:

SmallerGovNow2's picture

Interesting stuff but what's it all mean?

medium giraffe's picture

Hope you like hurricanes and methane.

Urban Redneck's picture

And magnetic (pre-GPS) compasses acting possessed.  

Non Passaran's picture

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

Now go to some leftie climate conspiracy site.

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....

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.

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!


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. 

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?

fonzannoon's picture

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

shovelhead's picture

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

Got the Tee shirt.

GetZeeGold's picture



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

pods's picture

I see they've played Calvinball too?


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.

PaperBear's picture

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

SpanishGoop's picture

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

There, they did it again.


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!" 


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.  

DOT's picture

All laws are good laws if they are secret.


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.