Frontrunning: September 20

• Greek bank stress tests delayed until glitchless passage can be ascertained. No way would Europe want to test someone if there is even a small risk they fail (FT)
• Europe debt crisis abates as traders see yield spreads narrow (Bloomberg), yet oddly enough Irish Bund spread surge to 390...strange this thing reality
• Lenihan Rules Out Outside Aid for Ireland as Bond Auction Nears (Bloomberg)
• Raghuram Rajan - Perhaps Paul Krugman believes that by labeling other economists as politically extreme, he can undercut their credibility. But his is badly weakened by the myriad errors he makes. (The American)
• Bond Markets Get Riskier (WSJ)
• Shock Waves for Stocks If GOP Wins Congress (Bloomberg)
• Fear and loathing in Paris and Brussels (FT)
• Escaping Double Dip to Growth Recession Means No Job Relief (Bloomberg)
• Tea with little sympathy for US (FT)
• Japan Can't Curb Yen Acting Alone, Bank of Korea Governor Says (Bloomberg)
• China Must Spur Consumption to Meet Global Challenges, Li Says (Bloomberg)
• Swedish Government Wins Second Term; Far-Right Sees Gains (WSJ)
• Bank of England Says Pound Rally May Reflect Confidence in U.K. Outlook (Bloomberg)
• Krugman on the angry rich (NYT)

Economic data:

• Italy Trade Balance (Total) (Euros) for July 1750.0 - better than expected.Consensus 1000.0. Previous -3058.0.
• UK Rightmove House Prices for September -1.1% m/m 2.6% y/y. Previous -1.7% m/m 4.3% y/y.
• UK Major Banks Mortgage Approvals for August 45K - lower than expected. Consensus 46K. Previous 47K.
• UK M4 Money Supply for August -0.2%m/m 1.8% y/y - lower than expected. Consensus 0.2% m/m. Previous 0.4% m/m 2.3% y/y.

Comments

[viator]

Catch 22

The IMF itself has become the problem as Europe's woes return Once a quorum of big names says the game is up in a debt crisis, events move fast and furiously.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/801217...

[snowball777]

So what's the moral (hazard)?

We'll punk your yields if you're 'austere' or not so spend first and beg later.

But do keep that gold handy, Portugal.

[Catullus]

They're still auditing the cocktail napkins.

[Calvin Jones an...]

Krugman isn't the end all but Rajan is an idiot.  Besides, anyone affiliated with the AEI automatically has no credibility.

[Grand Supercycle]

DOW weekly chart shows key resistance around 10,700

http://stockmarket618.wordpress.com

[Grand Supercycle]

: (

[Abu Morpheus]

The final "tell" on Krugman, from his article:

The spectacle of high-income Americans, the world’s luckiest people (emphasis mine), wallowing in self-pity and self-righteousness would be funny, except for one thing: they may well get their way.

It is very hard to have civil discourse with someone who holds this particular view.