Bad: Joerg Asmussen is leaving the ECB. He was an austerity hawk / debt dove. He’s likely to be replaced by a Bundesbank hawk on both fronts, who will then undermine Mario Draghi’s OMT bond-buying program. The OMT is the one policy currently holding the Eurozone in relative stability and removing it will likely let the crisis spiral out of control.
Bad: Wolfgang Schaeuble is staying as
German Eurozone finance minister. He will then continue on his brave plan to burn down Europe’s economy outside of Germany, while funnelling to Germany massive financial profits through capital flight and manufactured risk arbitrage. German stocks, which dipped 5% in anticipation of the cabinet announcements, will jump back. Non-german European industry will fall.