Today final hurdle for European Central Bank's controversial government bond buying got cleared by European court of justice.
According to the court's decision European Central Bank's (ECB) buying of government securities potentially in unlimited quantities stand legal and within its mandate.
- Today's decision stands very important on the eve of potential Greek exit. The decision clears hurdle not only for current Public Sector Purchase Program (PSPP) but clears hurdle for Outright Monetary Transaction (OMT), which was first introduced during 2012.
With legal hurdles cleared, there stands little on the way of ECB to activate OMT program if required.
- IF Greece choose the exit route and leave the Euro area, OMT is the toll which will be needed to contain the risk since the program involves full risk sharing and conditionality.
- A country can activate the OMT if required after accepting the conditionality.
Greece's move over the next week will decide, whether ECB will need to deploy the big gun (OMT) to prevent contagion.


J.P. Morgan Sees Potential Vestas Guidance Upgrade Amid Strong Wind Energy Demand
Silver Cracks Key 365-Day EMA for First Time Since Feb 2024; Bears Eye $50 on Rallies
How AI prompting turned writerly description into an everyday skill
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns
World Cup technology: from ref cams to AI analysts, cutting-edge research is changing the game
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer
With Iran and the US signing a peace deal, where does that leave Benjamin Netanyahu?
Goldman Sachs: US Dollar Likely to Stay Strong Despite Oil Price Retreat
AI Memory Boom Sparks Global Chip Supply Crunch
Today’s space race could turn fatal if we don’t agree on new rules
Gold Surges Above Key EMAs, Bulls Eye Resistance Amidst Bullish Momentum
How Donald Trump has changed the way diplomacy is done 



