Daily US Opening News And Market Re-Cap: September 27

Tyler Durden's picture

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The4thStooge's picture

So after all of the rumors about other countries bailing out Europe have failed, the rumor that does the trick is that Europe can bail out itself. Remarkable.

Snidley Whipsnae's picture


  • German Chancellor Merkel says we are not prepared to implement further stimulus programmes.
  • Confirmation of the EFSF leveraging talks sparked outrage in Germany,
    where opposition politicians threatened to derail the plans by voting
    against a key amendment to the bail-out fund this Thursday.
  • Maybe this has someting to do with Merkel's comments...

    "Germany's Top Judge Throws Major Monkey Wrench Into Leveraged EFSF Machinery, Demands New Constitution and Popular Referendum For Further Powers"

    "Germany's top judge has issued a blunt warning that no further fiscal powers may be surrendered to Europe without a new constitution and a popular referendum, vastly complicating plans to boost the EU's rescue machinery to €2 trillion (£1.7 trillion).

    Andreas Vosskuhle, head of the constitutional court, said politicians do not have the legal authority to sign away the birthright of the German people without their explicit consent.

    "The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution)," he said.

    "There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit – which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people," he told newspaper Frankfurter Allgemeine.

    The extraordinary interview comes just days before the Bundestag votes on a bill to revamp the EU's €440bn bail-out fund (EFSF), enabling it to purchase EMU bonds pre-emptively and recapitalise banks."


    Smiddywesson's picture

    Judges smudges.  In the end, the law will be ignored and they will go along with the party.  We all have to print to kick the can, and judges don't have any say in the matter.

    Racer's picture

    yes, that is what the world needs, more leveraged debt

    HistorySquared's picture

    Solve a debt problem with more debt. Brilliant. This is just a temporary solution to the one we all know is coming, monetization and money printing. 

    willien1derland's picture

    CDO SQUARED BABY - Place all of the EU's chips on 33 Black & SPIN the wheel...Mr. Geithner would like nothing more than to the croupier....I can feel the excitement in the air!

    kurzdump's picture

    ...while China splits equally on black and red?

    kahunabear's picture

    Meet the new debt, same as the old debt!

    We won't be fooled again!

    Or will we?


    snowball777's picture

    Okay, new rule: no more "official said" business...if it doesn't happen on video with whomever supposedly said something actually saying something, it doesn't exist.

    Sarkozy can make whatever claims he wants about the EFSF, but if Germany isn't on-board, he's "whistling dixie", as we say in the states.