HOW'S THAT AGAIN?

Got up early, two tv's on at 7:45, yellow pad and paper and pencils in hand, full pot of Joe on the burner, ready to record and comment of the soon to be uttered momentous words from the Chairman: we got bupkus.

Bennie said damn near nothing that we hadn't heard before except that the Fed was prepared to be more accommodating if required, which come to think of it we had heard that before as well.  I immediately called a bud at Morgan Stanley and got him as he was going out the door to get an early start on the long Labor day weekend, and THAT was the story from this side of the pond.  The markets did well on almost zero volume and the story that Draghi had managed to drive a wedge in the German wall of resistance to his Buy the Bonds program as the head of the Bundesbank threatened to resign over the concept.  Some where, somehow this was deemed to be a good thing, as if speaking about some junior minister for south east Westphalia.  It isn't.  The Chairman of the Bundesbank is a very big guy indeed, not only in a financial sense but in a political sense as well.  If he were to resign at odds with the government there would be hell to pay, especially for Angie who still has that meddlesome election coming up shortly.  But the one of a few in New York that might have understood this and raised a question, was well on his way to Sagaponic and so the feeling of comfort continued for the night watchmen for whom 4:00 pm couldn't come quickly enough.

The view now shifts to Europe and next Thursday when Mario is expected to lay out his thoughts in some detail as to "whatever it takes" really means.  Until then, the phone lines--what...oh yeah, we don't have "lines" any more--the airways will be burning up in Germany and between their northern neighbors as to how to deal with this crazy Ey-ty before next Thursday when he might get them all fired.  I must say, I never thought he would get this far this soon.  Maybe I've been wrong about the entire scenario (which wouldn't be the first time) but I simply can't see Germany folding on this critical constitutional issue without conditionality that would render the concept almost certainly unworkable.  In any case it is the late afternoon and MY night watchman duty is officially ended and I look forward to the first weekend of college football and an extra day off on Monday.  Labor Day.  On which we do no labor.  Odd.

See you Tuesday.