There are no big stories in today's links so I am going to leave it as is. Tomorrow at 10AM German time we get the German Constitutional Court ruling. That's the big piece of news that we are waiting on. Most people think the court will allow the European Stability Mechanism (ESM) to remain in place and so allow ECB head Mario Draghi to move forward with his plan to monetize periphery sovereign debt. But if the court rules against the ESM, we will see a massive sell off both in stocks and bonds.
The next day is FOMC day and the expectation is for QE3 and as much as $800 billion of easing. I expect the Fed at a minimum to extend the language on its zero interest rate policy through 2015. It's not a slam dunk for QE, especially with less than two months left before the elections in November...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.