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ECB’s Draghi Plan doused by rebellions in Germany and Greece- Bad for Europe, Good for US

I’ve had this crazy idea  for the past couple of years that bad news in Europe is good news for US markets because it drives capital flight from the Eurozone to the US “safe haven” or Last Ponzi Game Standing. Well, here’s today’s dose of good news for US markets.

A delay to the highly anticipated German court decision on bail-out funding and a rebellion in the Greek government over austerity doused hopes that the European Central Bank will be able to stem the crisis after all.

Germany’s federal constitutional court said it might be forced to delay its ruling on the legality of the European Stability Mechanism (ESM) because of an eleventh hour objection by an MP. Peter Gauweiler, a member of Angela Merkel’s ruling coalition, argued that the court ruling, due on Wednesday, should take time to assess the impact of the ECB’s “outright monetary transactions”, announced last week.

The German Chancellor’s spokesman insisted that the ECB’s plan to buy unlimited sovereign bonds from countries being supported by the bail-out funds – dubbed the Draghi Plan – should not impact the court ruling. However, the court said it would consider the request and announce its decision on Tuesday. A delay could push ratification of the fund back until next year, when countries including Spain are expected to require help imminently.

Meanwhile, Antonis Samaras, the Greek prime minister, failed to deliver the approval of his two coalition partners for the €11.5bn (£9.2bn) programme of cuts needed to secure the next tranche of international aid.

via Debt crisis: ECB’s Draghi Plan doused by rebellions in Germany and Greece – Telegraph.

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On the other hand, German FinMin Schauble is trying to counter that by saying, “Hey, the US is worse off than we are!”

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