What Today's Real ECB News Really Means

Tyler Durden's picture

Bloomberg has run a story, citing two anonymous central bank officials, stating the ECB may not be ready to finalise its plan to buy government bonds at the September 6th meeting. JPMorgan's European economists note that the story cites two reasons for this: (a) The Governing Council wish to wait until they have seen the German constitutional court ruling on September 12th before proceeding; and (b) The programme is still being worked on staff may not be able to finalize it by then. Critically, JPM, like us, regard (a) as something of a smokescreen.


Very few think there is a high probability that the German Constitutional Court will deem the ESM unconstitutional and prevent its progress into law at this stage. While the Court may express some misgivings about the legislation and suggest modifications as it is put into practise, it is most unlikely to be blocked. We would not expect the ECB to delay its actions on the basis on what remains a low probability event at this stage. Rather, we would expect them to take the German Government at its word that it can deliver on the political undertakings it has made, until it discovers otherwise.

The “excuse” of the ruling on September 12 only has any substance to the extent that (b) is true – that work on the design of the plan is incomplete. The idea that work “is not complete” may also be a euphemism for the fact agreement on the contours of the policy is proving elusive. Even allowing for the summer break in August, an institution with the resources of the ECB has the ability to complete the technical issues in policy design over the period between meetings if it is minded too. Draghi has already “played for time” once with his sketch of policies still to be designed at the last meeting. Ultimately, we suspect Draghi and others at the ECB will recognise that continued delay in finalising its policy decisions contributes to the sense that opinion on the Governing Council is deeply divided, and hence its commitment to any policy intervening in markets will not run deep. That, in turn, could undermine the effectiveness of policy interventions themselves.


Source: JPMorgan

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Mr Lennon Hendrix's picture

Whoever junked me is an idiot and I want you to know that.

Stocks Rise After Bernanke, ECB Action Report:


slewie the pi-rat's picture

i was probably tyler

or sac

you didn't respond appropriately to the bankstering propaganda BULLSHIT form theMorgue, the bloomie, the tyler, the mario and of course the republicunts who pay extra to keep the confusion levels astronomical here!

come on man!  get with it!

[Paste} :>  Ultimately, we suspect Draghi and others at the ECB will recognise that continued delay in finalising its policy decisions contributes to the sense that opinion on the Governing Council is...

yeah... THAT bullshit!  tyler's just COVERED with it!  or is that impolite of slewie?

CrashisOptimistic's picture

There is only one significant question regarding ECB bond buying of Spain debt.  Will their bonds take precedence over other bonds held by other creditors?

If yes, then those creditors will flee before they get PSIed as they were in Greece.  If not, then the taxpayer is lower on the totem than bank creditors.  No way that can fly in parliaments.  No way credit rating agencies will permit it, either.

slewie the pi-rat's picture

well maybe that is significant to you, but i certainly don't give a shit

any more than i did about the greek paper-hanging mess

i learned a lot, and what i learned (bottom-line) is this:  how much money are we talking about?

as disjointed incrementalists continue to muddle thru and kick the can, is this the "stopper"?

no?  assuming that is correct:  where will they get the money?

3 guesses and the first 2 don't count?  they will "engineer it"!  they can CTRL+P and if the ECB gets too fuked up (remember last year) maybe the SNB can help or the FED [or the martians]

anybody with one of what? let's say: one of 15 printers can form a "combine" and knock it out with this digital fix if they can just get the points up front, capiche?  just like home, RILLY!

boilerplate rules!  this isn't money to me any more, it is simply boilerplate, and the phrases get jiggled to keep moving the money to the ubers

OMG!  they've built a GIANT PYRAMID!  it can't survive!

so what?  most were ready for the worst before they arrived here;  others "get it" (the counterparty danger) once they arrive;  life's too short to worry about things we can't control ALL the time

maybe we have been too concerned w/ doom b/c we don't understand the FED's job?  wouldn't that be embarrassing?  tyler!  egg all over face, dude?

the engineers have been working on this mess for 4 years

if i want haroldFukingCamping i know where to find him

but he keeps showing up here pretending he is tyler durden and i can't get him to even understand the new FED mandate of stability and how we might be able to rationally assess the FED's job performance if we were ready, willing, and able to tell the TRUTH about what the bankstering law actually sez!

but "we" are NOT

the fuking joker put up HOW MANY "dual mandate" articles in the last 8 days?

after slewie trying to tell him this is fuking BULLSHIT for months now?

asswipe wants a fight?  c/mon tyler!  you ain't shit and the whole world knows it now, too, toy-boy!  you are a propagandist about the FED for the republicunts!


75.000 QE turds flung;  zero rational and correct explanations of the FED under dodd/frank

put the fuking turds down tyler!  NOW!

michael_engineer's picture

A lot of what you have in the macro now is just a rolling over of bad paper while trying to reassign the stuckees and trying to

slewie the pi-rat's picture

of course!

i made the same point just last weekend myself after reading dNoland's prudentBear weekly summary

i pasted up his data abt the junk bond gross and net volume and abt 70% went to the re-fi and the rest was "vig to the issuer due to lower 'rates'" or some "new" paper

this is EXACTLY why "everything is screwed down tight" in the markets too!  there is a temendous amt of paper comming due all the time

we've been talking abt it for years

now they have "zirp" to try to get thru it

meanwhile, many people are eating today;  slewie has flip-flops in soSudan and i gotta fight tyler's disinfo and string-junking instead of write up what's going down again today?

thanks again tyler!  way to kill the dialogue!  ya damned jerk!

Ethiopia Announces Death of its Prime Minister Meles Zenawi

he died in a brussels hosptial on monday; the same thing happened to prezMills of ghana when he visited a western hospital earlier in the month--dead in 48 hours!  hey probly just some bad luck

tyler's wing-nut CFR puppet-masters don't want people to look?

South Africa: Battle for Presidential Succession Opens Up ...

i did write about the planeload of muslim leaders getting blown up coming out the sudan capitol to celebrate the end of ramadan in their tradional manner (try 'plane eplodingt in sudan/eid' if ya care abt reality kiddies)

bilary was in soSudan on august 3rd wasn't she?

nothing to see here... keep pretending for the puppet-masters, tyler!

soon maybe you can open with:  VICTORY FOR the CFR in SYRIA!  America rejoices!

maybe make some extra from them that day!  Boy!  good 4 you!  ya freaking shill!

LawsofPhysics's picture

Because JPM is always such a reliable source, bloody muppets.

LawsofPhysics's picture


Bread and circuses anyone?

macholatte's picture

“We need to stop coddling lawmakers, stop buying their red team, blue team narrative and ask harder questions of them,”

....... and it took her only 14 years to figure that out. A fast learner she is. 

Just another NPR numbskull mouthpiece for the Progressives. How hard could it have been to read the crap she was handed by Reuters or the AP and say the same, nearly identical shit the rest of the MSM says all day every day. And she actually got paid to do it.


bank guy in Brussels's picture

They need to provoke a crisis ... to justify money-printing and bond-buying intervention

Need to appear in conflict and disagreement to provoke that crisis ... which as well will drive down euro in short term to pump German exports

Just a game

A theme which ZeroHedge itself has been evoking ... things need to get 'bad' so they can get 'fixed' via QE and related

sunaJ's picture

Problem.  Reaction.  Solution.


WE know, We care, WE solve.  TPTB are primates running around with essentially the same bean in their skull that you have.  They cannot control what has been wrought but that will not stop them from trying.  All of their actions will be reactions - nothing to do with fundamentally or structurally changing what is broken.

francis_sawyer's picture

HDTV = Hegelian Dialectic TeleVision

macholatte's picture


Did you notice how everything was moving along nicely until the politicians came back from vacation?

eatthebanksters's picture

It goes against the grain of everything I know to be right and wrong to realize that politicians are continuing to favor bailing out criminal banking institutions to 'save us from ourselves' because these same banks, through lack of transparency, have created a situation where if they fail, they take everyone and everything down with them.  There will be no alternative plans because politicians need money to get elected and banks provide them more than any other source.  Secondly, no politician aver wants to be the source of pain or even discipline, the want to continue the giveaways to secure their guaranteed privilidged positions.  There is only one way to end this corruption, but I doubt it will ever come to be.  The government will do just enough to keep just enough of the people comfoprtable so the specter of a full blown rebellion never is real.  Welcome to the new world, where entrepreneurs, risk takers and hard workers are punished instead of rewarded. 


slewie the pi-rat's picture


"just" a game?

the QE-tyler game

and it's a real douche for tyler too

he's made a complete ass of himself playing the propaganda game for money on a site featuring free speech and intelligent readers

and, he's gotten played by the heavyweights too!

just like he did on wallStreet!

fool and his folly101.2(?)

what you miss is perhaps that the LAST summit was the goldilocksSummitTM

remember?  they had the purrrrfect crises for the summer:  scare all the littleChickens while pretending the sky might fall

so now ya want another one?

well... ok, but it will just be another bankster-managed bullshit storm resulting in the checks getting mailed and more transfer of wealth to the bankster criminal cabal running the EU, GB, switzerland, germany, and so on

if they can't do it next month politically they will do it with repos or SIVs or fraud or theft or new boilerplateRules to move the goalpost to where they can appear to make a decent kick


tyler is hopefully raking in the dough for his participation in these lies and crapola

but he just seems like another thug most of the time now;  if he doesn't understand the context of his charts, he doesn't know what they mean;  ever, as far as the FED is concerned, apparently

the stability is apparent;  the wheat is in the barns, the hay the cattle the beans the coffee the cocoa the sugar the rice the other grains; and you should see the grapes this year!:  they ALL grew in the photon-machine again, didn't they?

imagine THAT!

maybe someone should point this out to tyler;  b/c it isn't the best of times economically perhaps, but it is not totally unstable perhaps at this point either?

as you may have noticed, i'm trying to get thru to him for about 3 months now, but he only seems to have ears for 'marc & his money'

truth?  on zH?  Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha

slewie the pi-rat's picture

hey i can't prove this won't collapse next week can you b_guy?

nope?  well tyler must be right then, doncha think!

and that is EXACTLY the intelligence level to which tyler is pandering with his voluminous nutso propwash about the FED

slewie started buying theWellingtonFund in 1950-fucking-six!  there are the most orderly markets i can recall over that time-span of fifty-fuking-six years

but tyler simply will NOT listen

everybody has an agenda, but this is ridiculous!

look!  they hammered the vix to sell APPL!  yep and thxz tyler!  and that isn't  propaganda either, is it?  it's not about pretending dodd/frank isn't the FED-controlling LAW and it is not about pretending you don't can't understand that the FED is here now for stability and very little else really.  right now and for the last year imo as i keep saying day after day after day after STABLE day

you have a tremendous amount of knowledge to offer thePeople of the global clusterfuk and we are here to be with you tyler


Jlmadyson's picture

It means please do not let Greece drop off the map before Nov.

Please! Please! Please!

buzzsaw99's picture

there is a high probability that the cops shot some of those people at the empire state building too.

dingoj's picture

Precious metals rather imperturbable in the eyes of this central banking manoeuvering.

Dr. Engali's picture

Well that must mean its time to buy hand over fist.

caimen garou's picture

as usual the normal rumors just to find out later that no of thoes fools know up from down, but we do know that the ppt is on top of the situation as markets are in the green! time to go fishing and knock down a few cold beers, close enough to 12:00 cst.

Darth Mul's picture

You all must begin to use Likud Logic.  Resistance is futile - your logic will be assimilated.

Apropos of much - next time some mouth-breathing anti-semite claims that there's a "Zionist Occupation Government" or something about "Jewish control" of banking, etc. - you just look that person straight in the eye and you let them know that it is a racist, antisemitic canard, because  the head of literally every federal agency {in the Executive} responsible for oversight of the budget, banking, and the financial industry is a Jew.  And since Jews are only 3%< of the population, they are not 'wildly over-represented.'

NB: It can safely be said that Jews are under 3% of the population: http://www.jewishvirtuallibrary.org/jsource/US-Israel/usjewpop.html ...


 {and the http://en.wikipedia.org/wiki/White_House_Office which is subsumed under the EOPOTUS}



http://en.wikipedia.org/wiki/President%E2%80%99s_Council_on_Jobs_and_Competitiveness *{chief economist}








The Federal Reserve System is uncontroversially owend by a consortium of prvately held banks which are not subject to any significant oversight or even audit by the government of the United States.  The Chair and 4 of the 7 members of the "Federal" "Reserve" Board are Jews {and a significant portion of the recent chairs and branch presidents have been Jewish as well}:


and - surprisingly - only 4 or maybe 5 of the 12 regional bank presidents:


and probably around half {therefore} of the mighty FOMC


The greatest trick the ZOG ever played was convincing the world that it both didn't exist, and that describing its existence was 'anti-semitic'.


Go back to sleep.  You may be drafted for the wars after Syria and Iran... you need your rest, goyim.




p.s. 'Jews' aren't the problem.  'Israelis' aren't the problem.  Likudnik Zionist Jewish Supremacists are the problem... and they have absolutely infiltrated and hijacked the US government, and banking and media internationally.   Iran is about the petrodollar, installing a private central bank, and removing support for Hzbollah and Fatah so 'Greater Israel' can be born on the sea of blood that is ever the consequence of delusional, racist, ethnocentric messianism.








Facts are stubborn things....

francis_sawyer's picture

 "My opinion of Christian Zionists? They're scum. But don't tell them that. We need all the useful idiots we can get right now"

~ Benjamin Netanyahu (at the time a former Israel Prime Minister)



Mylegacy's picture

One of the WONDERFUL things about most North American Jews is they are "secular." Indeed - I'd venture that a great deal more "Jews" are atheists than could be contemplated in your philosophy.

As to Israel - it is increasingly becoming religious. Not just religious - but maligantly, disgustingly, racistly, fundamentalistly end-of-times-insane.

Jews, Christians and the hoards of Islam - ALL believe that the creator of the universe is a self-confessed, multiple-occasion, mass-murdering lunatic with whom they wish to spend eternity in his "loving embrace." Insanity - and those who don't consider religion as any more than a mildly useful guideline are terrifingly dangerous.

Religion - be gone! 

Dareconomics's picture

There has been a lot of statements made about Eurocrisis issues today. Do you think they have a bs quota for the week that ends on Friday?

Well, regardless of my musing, the ECB is claiming that they will not announce the details 0f their latest magic bullet, the bond-buying program, until the German constitutional court rules on the ESM. Furthermore, the ECB claims that the staff has not yet finalized the plan.

We all know that the Germans will approve this legislation, and that the ECB can tell Johan, Jean, Juan and Giovanni to work overtime to get 'er done, which means that Super Mario and Co. are stalling for time.

Why are they stalling? There is probably dissension in the ranks about buying sovereign bonds. Even though Merkel supports this type of intervention behind closed doors, the Bundesbank most definitely does not. My guess is that Draghi is using this time to whip the rest of the ECB board into some sort of consensus, and that means gets at least tacit approval from the Bundesbank.

The euro is ultimately a political project, and keeping the currency union together is the highest priority for European politicos. Mark my words; when push comes to shove, the ECB will print to buy sovereign bonds:





timbo_em's picture

Maybe I'm naive but I do think that there is a possibility that the German court demands some substantial changes to be made in the implementation laws of the fiscal compact and the ESM. While those changes might not delay those two treaties, the changes might massively undermine the actual purpose of those treaties. I'd be surprised to see the court give it's ok to such a massive shift in powers towards the German government/finance minister (ESM) and Brussels (fiscal compact).