First there was the news that Jürgen Stark, German ECB hawk resigned from his position: It's Official: Stark Is Gone, as runour has it over the continued ECB policy of buying up bonds of countries in distress. This move may signal the next step by the ECB, something we need to worry about: starting up the money presses.
This action won't be taken lightly. In fact, I doubt it will be taken at all until the market puts a gun firmly to the ECB's head and forces it to choose between its two great loves: the euro or its Germanic belief in hard money. "You can't have both" the market will say, as it cocks its gun and slowly squeezes the trigger. And my guess is that the ECB will let its principles go and sell the strategy to Germans as a hard-money sabbatical.In the mean time Germany is said to prepare for a Greek default this weekend. Something which the Greek obviously deny.
And to put insult to injury, Ms. Merkels coalition partner and erstwhile ally, the FDP, is now calling for a referendum on the EFSF, something which may spell the end, but certainly will delay any EUnion attempts at rescuing the Euro banking sector and the euro itself.
ZeroHedge has a nice overview of upcoming key dates and events that will decide the course of events in the coming days and weeks. We've said it before: Hang on to your seats.