Frontrunning: November 17

• The horrible truth starts to dawn on Europe's leaders (Telegraph)
• Fed May Hesitate on More Easing After Critics Question Mandate (Bloomberg)
• UN warns of rising food prices (FT)
• China Targets Liquidity to Cool Inflation (China Daily)
• Anger at Germany boils over (FT)
• BofA CEO: Settling foreclosure probe best solution (Reuters)
• China Buys Treasurys for Third Month (WSJ)
• Bond Vigilantes Ride Again (Barrons)
• Irish Aid Talks Stop Short of Bailout as EU Lauds Austerity (Bloomberg)
• Spain to Pay More for Bonds Amid Irish Contagion (Bloomberg)
• GM offering raised to meet big demand (FT)
• Buffett praises bail out efforts (Reuters)
• How to chart a course out of the Sino-American storm (FT)
• George Soros says conditions "pretty perfect" for gold (Reuters)
• Three Reasons Global Talks Hit Dead End: Mohamed A. El-Erian (Bloomberg)
• Humor: Bold Prediction: Dow Will Top 14000 in 2012 (Forbes)

Economic data:

• Euro-Zone Construction Output for September -2.1% m/m -8.1% y/y. Previous -0.4% m/m -8.5% y/y.
• Italy Current Account (mlns euro) for September -8123M. Previous -5044M.      
• Sweden Industry Capacity for Q3 88.6%. Previous 86.9%.
• Sweden Average House Prices (SEK) for October 1.952M. Previous 1.902M.
• UK Claimant Count Rate for October 4.5% - in line with expectations. Consensus 4.5%. Previous 4.5%.   
• UK Jobless Claims Change for October -3.7K - lower than expected. Consensus 6.0K. Previous 1.3K.      
• UK Average Weekly Earnings 3M for September 2.0% - in line with expectations. Consensus 2.0%. Previous 1.7%.  
• UK Weekly Earnings exBonus 3M for September 2.2% - lower than expected. Consensus 2.3%. Previous 2.0%.
• UK ILO Unemployment Rate (3mths) for September 7.7% - in line with expectations. Consensus 7.7%. Previous 7.7%.

Comments

[snowball777]

Dear swarthy, drunken profligate deadbeats,

Fuck you.

Sincerely,

The Reich

P.S. We're leaving the Euro; Deutsche Mark Uber Alles.

[dan22]

http://www.youtube.com/watch?v=Yjr7NtntWeQ

[firstdivision]

...and futures spike on the horrid CPI, and housing starts.  Everyone is looking forward to QE3 now.  Get ready for that to be priced in the next couple of months.

[snowball777]

At what point does the Fed start buying its own assets over again?

[HelluvaEngineer]

I fully expect some lame bailout plan for Ireland to be unveiled on Friday or this weekend, burning the pile-on late to the game shorts.  Plus we've got the GM pump and dump show going on, and CNBC is giddy as ever.

We'll rally and take out the most recent highs (just barely), then get ready for the next flash crash.

Any thoughts?

[snowball777]

Ireland will swear up and down that they can drive themselves home until about mid-January when the size of the bailout for them, Portugal, and Spain will be an order of magnitude larger than now.

[Oh regional Indian]

UN warns of rising food prices...that is the key one. 

The one that made italian's riot over pasta prices recently. The one that is boiling over in India.

Food prices will cause the Tip. No doubt. Everything else is ephemeral.

Food is survival. It is on top of China and India's worry list.

ORI

http://aadivaahan.wordpress.com

[snowball777]

How many meals from revolution, again?

[Oh regional Indian]

3?

ORI

[A Man without Q...]

agreed - Chinese govt taking about price controls, but with level of corruption in the provinces, will surely lead to huge rise in black market with official shops having low prices but empty shelves, like the Soviet Union in the 80s.  If urban workers cannot find enough food, it will get pretty ugly.

http://www.ft.com/cms/s/0/a49d39f4-f17b-11df-8609-00144feab49a.html

[Oh regional Indian]

Yup, same scene here in India. We have a corrupt Public Distribution System, extremely tenuous supply chain. 

Very very slippery slope with food security here. Biggest concern!

ORI

http://aadivaahan.wordpress.com

[Spalding_Smailes]

In a speech this morning, EU President Herman Van Rompuy (poet, and writer of Japanese and Latin verse) warned that if Europe’s leaders mishandle the current crisis and allow the eurozone to break up, they will destroy the European Union itself.

“We’re in a survival crisis. We all have to work together in order to survive with the euro zone, because if we don’t survive with the euro zone we will not survive with the European Union,” he said.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ ....

[buzzsaw99]

Fed May Hesitate on More Easing After Critics Question Mandate

Whatever happens it will never be the fed's fault. If everyone would just leave them alone they can fix this. [/sarcasm]

[M.B. Drapier]

Here's the FT's "Anger at Germany boils over" on CNN. There's little popular or media anger at Germany or Merkel in Ireland though - yet anyway.

[gjp]

You missed Warren's slavish op-ed in the NYT praising the government for making him even richer

[kevinearick]

The default risk was rolled into the TBTF American Enterprise System, as agreed.

Have a nice day.