There has been a lot of statements made about Eurocrisis issues today. Do you think they have a bullshit 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: