Frontrunning: December 22

• IMF announces it has concluded its gold sales (IMF)
• Euro helped by report China will buy Portugal's debt (Reuters)
• Huge South Korea Drill Likely to Infuriate North (Reuters)
• And wristslaps for all: Deutsche Bank to Pay $554 Million in Tax Shelter Case (Bloomberg)
• Another proposal to use a firehose to kill those pesky CDS speculators: Derivative Blitz Needed to Tame Anarchic Bonds (Bloomberg)
• China Inflation Risk Leads to Asia's Worst Bond Returns (Bloomberg)
• Does a Low VIX Signal Danger? (Barrons)
• Anglo Irish Bank Wins Restructuring Support (FT)
• Banks Best Basel as Regulators Dilute Capital Rules (Bloomberg)
• The eurozone needs more than discipline from Germany (FT)
• When fat cats talk . . . Team O listens -- at last (Gasparino)
• Chrysler Financial Value Jumped 33% After Treasury's Exit (Bloomberg)
• China's Risk-Weighting Rule May Cut Banks' Capital, Profits, Barclays Says (Bloomberg)

Economic Highlights

• Germany Import Price Index for November 1.2% m/m 10.0% y/y higher than expected Consensus 0.5% m/m 9.3% y/y Previous -0.2% m/m 9.2% y/y.
• Italy Consumer Confidence Ind. sa for December 109.10 higher than expected Consensus 108.3 Previous 108.5.
• Sweden PPI for November 0.8% m/m 2.20% y/y higher than expected Consensus 0.3% m/m 1.7% y/y Previous -0.7% m/m 2.3% y/y.
• Norway Unemployment rate(AKU) for October 3.6% higher than expected Consensus 3.5% Previous 3.5%.
• UK Total Business Investment for Q3 3.1% q/q 8.9% y/y higher than expected Consensus -0.2% q/q 4.6% y/y Previous -0.2% q/q 4.6% y/y.
• UK GDP for Q3 0.7% q/q 2.7% y/y lower than expected Consensus 0.8% q/q 2.8% q/q Previous 0.8% q/q 2.8% q/q.
• UK Current Account (BP) for Q3 -9.6B lower than expected Consensus -8.5B Previous -7.4B.

Comments

[wiskeyrunner]

It's about time for the great economic data to be released, and then the gap up on the open for SPY. Gap up on open sideways in 2 point range for 6 hours.

[Oh regional Indian]

Someone should do a VIX/BDI correlation.

I sense the result would be quite startling.

2008 would be a good test case.

They hit their  lows together (August 2008 I think), then?

We all know, eh?

ORI

http://aadivaahan.wordpress.com

[kornholio]

With the topic of POMO being such a massive subject discussed here on zerohedge, why do the business channels like CNBC never talk about it?

[Internet Tough Guy]

The first rule of ponzi finance is you don't talk about ponzi finance.

[TheProphet]

The second rule is YOU DO NOT TALK ABOUT PONZI FINANCE.

Third rule: when the Treasury taps out, the PONZI is over

Fourth rule: only two Central Banks to a PONZI

Fifth rule: only one PONZI at a time, fellas

Sixth rule: No TIPS, no PMs

Seventh rule: Ponzis will go on as long as they have to

Eighth rule: if this is your try at finance, you have to PONZI

[rickA]

cnbc also forgot to mention the fed balance sheet hit $1T yesterday for pomo'ing their own treasuries

[AccreditedEYE]

@ Bloomberg CDS story... Great, the ECB becomes the next AIG. Brilliant!

[TheSettler]

Apple-bans-Wikileaks-App

http://www.telegraph.co.uk/technology/news/8219240/Apple-bans-Wikileaks-...

[Careless Whisper]

front run this too:

Lindsay Lohan reported drunk at Betty Ford Clinic

Lindsay collects on lawsuit against etrade for calling baby Lindsay a "milk-a-holic"

Lindsay Lohan fans called on to Crash JP Morgan Buy Silver

http://www.youtube.com/watch?v=WoHOAPSgzJM

[Bendromeda Strain]

The IMF reported that the final gold sale was made to a wee bank in Mobile AL

http://www.youtube.com/watch?v=bZfyrIPw3wY

[hedgeless_horseman]

What did the IMF do with the proceeds?

Ronan Ryan (Town Bar and Grill): “We’re the first people to get money from the IMF,” when officials visited earlier this month. “I was going to bill them for 85 billion euros, but decided against it.”

http://www.bloomberg.com/news/2010-12-22/imf-visitors-boost-dublin-restaurants-battling-christmas-snow-recession.html