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The Eurozone's giant sucking sound | 136 comments (136 topical, editorial, 0 hidden)
Re: Liquidity in life; Credit in death. (n/t) (none / 1)
The court isn't the bundesbank or the ecb.

And they have never said no to an european treaty before.

by IM on Fri Sep 7th, 2012 at 05:24:00 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (none / 0)
The Court will have to adjudicate between the Bundesbank and its fans, and the German industry which has finally come out in support of the Euro. And, of course, Merkel has hedged her bets by supporting Weidmann publicly and having her man Asmussen support Draghi, so she will come out on top in any case. I suspect that Schäuble will burn out of this one, too.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa
by Carrie (migeru at eurotrib dot com) on Fri Sep 7th, 2012 at 05:44:48 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (none / 0)
They have to decide on constitutionality. There is a shift from parliament and its budget rights to the executive. Perhaps a shift too far.
by IM on Fri Sep 7th, 2012 at 05:53:11 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (4.00 / 3)
It would be great if the outcome of all this were to subordinate the ECB to the European Parliament.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa
by Carrie (migeru at eurotrib dot com) on Fri Sep 7th, 2012 at 06:07:50 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (none / 1)
Everybody who claims that there will be a "No" from the Constitutional Court next week, hasn't paid attention. (And, yes, I know that's all of our media.)

Das Bundesverfassungsgericht The Federal Constitutional Court
Die Anträge sind darauf gerichtet, dem Bundespräsidenten bis zur Entscheidung über die jeweilige Hauptsache zu untersagen, die von Bundestag und Bundesrat am 29. Juni 2012 als Maßnahmen zur Bewältigung der Staatsschuldenkrise im Euro-Währungsgebiet beschlossenen Gesetze zu unterzeichnen und auszufertigen.The requests are directed to ban the President from signing the laws adopted by the Bundestag and the Bundesrat on the 29th of June 2012 as measures to tackle the sovereign debt crisis in the euro area until the decision on the particular main decision.

The court will either decide the law can be put in force or it will decide there must be a ruling in the matter (next year or so).  I find the former is more likely. The court will NOT decide on the constitutionality next week.

by Katrin on Fri Sep 7th, 2012 at 06:32:40 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (none / 0)
So if they decide to kick the can down the road for another 6 months, what happens to the ESM?

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa
by Carrie (migeru at eurotrib dot com) on Fri Sep 7th, 2012 at 06:39:22 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (none / 0)
More likely yes, but not assured,

And in in the current situation a stay would be enough to wreck the eurozone.

by IM on Fri Sep 7th, 2012 at 06:41:26 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (none / 0)
I'm almost rooting for the Court to give 54% of the German public the train wreck they crave.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa
by Carrie (migeru at eurotrib dot com) on Fri Sep 7th, 2012 at 06:45:21 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (none / 0)
But the joke will be on us all.
by IM on Fri Sep 7th, 2012 at 06:46:09 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (none / 1)
Spain has already been destroyed.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa
by Carrie (migeru at eurotrib dot com) on Fri Sep 7th, 2012 at 06:46:40 AM EST
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Re: Liquidity in life; Credit in death. (n/t) (4.00 / 2)
Unless some sort of loophole is found, yes. The court is aware of that, though. I don't believe they will decide on (another) stay. And that means Merkel's strategy of postponing a decision until it is too late for a meaningful debate will have won again.
by Katrin on Fri Sep 7th, 2012 at 06:47:09 AM EST
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The Eurozone's giant sucking sound | 136 comments (136 topical, 0 editorial, 0 hidden)
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