Frontrunning: December 13

• Must read: The eurozone is in bad need of an undertaker (Ambrose Evans-Pritchard)
• If China Blows Up, So Will Every Other Market (Forbes)
• China Risks `Rush' to Tighten in 2011 After Inflation Surges (Bloomberg)
• China Said to Plan for at Least $1.1 Trillion of New Lending (Bloomberg)
• Spotlight On Banks' Exposure in Europe (WSJ)
• Backers and critics see passage of Obama tax deal (Reuters)
• Irish Sovereign Debt Default Would Be Far From Armageddon (Bloomberg)
• Paul Myners Op-Ed: Break up Britain’s uncompetitive big banks (FT)
• No New Normal for 2011 in Forecasts for 11% S&P 500 Gain (Bloomberg)
• Obama signals brighter vision of tax reform (FT)
• Japan Said to Consider Extension of Tax Break on Dividends, Capital Gains (Bloomberg)
• Push for shake-up of EU rescue facility (FT)
• Banks Reduce Greek, Irish Holdings in Second Quarter, BIS Says (Bloomberg)
• EU Should Pull Financial Support If Targets Missed, OECD Says (Bloomberg)
• ECB's Stark Says Greece Is on Track but Needs Structural Reform (WSJ)
• U.S. to hold pivotal trade talks with China and then EU (Reuters)
• The Ponzi Scheme That Changed My Life (NYT)
• Krugman now opposes raising $850 billion in debt for short-term stimulus (NYT)

Economic Highlights:

• UK Rightmove House Prices for December -3.0% m/m 0.4% y/y. Previous -3.2% m/m 1.3% y/y.
• Switzerland Producer & Import Prices for November -0.2% m/m 0.1% y/y - lower than expected. Consensus 0.1% m/m 0.3% y/y. Previous -0.4% m/m 0.3% y/y.
• Sweden AMV Unemployment Rate for November 4.3% - lower than expected. Consensus 4.4%. Previous 4.5%.
• UK PPI Input NSA for November 0.9% m/m 9.0% y/y - higher than expected. Consensus 0.5% m/m 8.3% y/y. Previous 2.1% m/m 8.0% y/y.

Comments

[Josephine29]

For those who do not follow the UK closely the article by Paul Myners in the Financial times is rather extraordinary. He wants the banks broken up he says and yet he is the man who was with Gordon Brown responsible for the biggest merger in UK banking history when Lloyds Bank was merged (and indeed crippled) with Halifax Bank of Scotland.....

He could at least say sorry or better simply shut up.

[BotanyBabe]

Best comment re. AEP article...

"I don't believe that decisions of this magnitude are made by people with no brains. But I would suggest that they are made by people with no morals and no loyalties to their own people."

http://www.youtube.com/user/europarl

[Careless Whisper]

while the criminal central bankers are bailing out the offshore banks with qe2, gas has hit $3.65/gallon and butter is now $3.99/pound. these people know exactly what they are doing.

http://www.peapod.com

[Miss Expectations]

The Eurozone is in bad need of an undertaker...

“Each country needs to be held responsible for its own debt," said Germany’s monetary avenger at the ECB, Jurgen Stark.

It's been clear to me for some time that what we need is a Toxic Avenger:

http://www.youtube.com/watch?v=27E4Qfj7iEY

[sbenard]

Irish Sovereign Debt Default Would Be Far From Armageddon -- Bloomberg

But would US soveriegn debt default be armaggedon?

[kaiserhoff]

The Socialist Security Adminsitration, remember them?, has proposed a horrible rule change.  They want to end "no interest loans to taxpayers."

They want to abolish a program, whereby an early retiree (62) could change his mind, pay back benefits received, and retire later with a larger check.  This is really bad news for small business, traders, and anyone who hoped to have some flexibility on retirement timing. 

The rape of the middle class continues.

Proposal open for comments until Feb 15. Give them an ear full.

[Problem Is]

"The eurozone is in bad need of an undertaker"

Thank you for the excellent EU analysis, Mr. Evans-Pritchard...