CRB

Whatever... Final sign off by Germany and an ESM start-up session for 08 Oct.

Yes, Sir, I Can Boogie.

Spanish aid “not urgent, given actual market levels”…

No Boogie?

Looks like a loop bad US news, good EUR; good EUR must be good news.

Love boat, everywhere. Final Risk On, or so. And up 1%

The key event overnight was the German constitutional court's announcement shortly after 8 am CET in which the Krimson Kardinals announced that, as largely expected by everyone except the EURUSD trading algos, there would be no delay in the September 12, 10 am CET injunction decision, as a result of the last minute bid by Peter Gauweiler. As Bloomberg reported, “It’s no surprise the court won’t change its plan,” said Christoph Ohler, a professor of European law at Jena University. “You cannot directly sue over the acts of European institutions in a German court, so it’s difficult to introduce these arguments in this case." The decision to press ahead with the ruling will probably bolster the German government’s faith that the bailout facility will get the court’s backing. German Finance Minister Wolfgang Schaeuble told students last week he was confident the ESM would be approved. “Europe won’t collapse on Sept. 12,” Franz Mayer, a law professor at Bielefeld University, said in an interview last week. “In the end, the court will allow Germany to ratify the ESM, but there will probably be some strings attached. The bigger issue than the actual ruling is what extra language the court will add to the reasoning on where the limits are in the future,” said Mayer. “The markets seem to be quite afraid the judges may spoil certain options for the future, like collectivization of debt within the euro zone." Which leads us to the quote of the morning when even Schauble it appears is channeling Clinton after he said that interpretations on the word "unlimited" can vary. No they can't, and this is precisely the issue that the judges will take offense with, if anything.

Ah, hmm, yes, Greece… Not much else to chew on.

Risk is lofty and near the point where all stimulus measures that were already priced have been delivered.

So, what's next?

Central Banks United have the upper hand these days. So don’t mess with them…

At least not this week…

So, ok, yes, there’s a huge conditional bazooka out there, but who wants to really use it?

 Seems like a huge defibrillator. Good to have, but beware of not shocking the patient too much. 

Monetary Outright Transactions - MOT

Moths??? Like those burning up on light bulbs??? Or like in “to mothball”, buy and store?

There is still some compression margin, but where to put the credit spread, real or “perceived”, from a (real) default possibility point of view or even from the shunned convertibility point of view?

“Believe me, it will be enough!” will request some massive outside-the-box thinking…

Upcoming calls from Ben and Mario to the governments?

Get your act together, there’s just so much that can be done.

Odd and contradictory ROn / ROff close

We don't need recession

Or means of repression

Just give us some money

Our life could be sunny too...

Markets taking any negative news as additional must-have accelerators of a bail-out.

Time being of the essence.

But what if things just drag on? 

Organic growth is slow and painful (Boo!), central bank money fast, cheap and with few strings attached (Yes!)…And anyway, QE and other supports have already been priced in… Can’t change the programme.

No exactly fireworks, but anything that isn’t totally bad these days is good to have.

 Good news, but then not so good news?! So, no QE, after all?

Not much life. Nor conviction.

Barely a pulse.

Can you feel it?