Financial News: 2009-12-18

By Edward Harrison On Dec 18, 2009

I will be out for most of the day, so posting may be light. Tonight it will snow in DC and we may get a foot by Sunday. I hear it has snowed in London too. Exciting stuff.

Pain in Spain (not mostly on the plain)

Pain in Spain – Paul Krugman Blog – NYTimes.com (Internal vs. external devaluation)
Moody’s ‘axe blow’ to rating on Spanish debts – Telegraph
La contracción de los servicios baja del 10% por primera vez en un año · ELPAÍS.com (Services contracted for a 15th month in a row in Spain, putting the sector down 10% in year-on-year comparisons.)
La morosidad vuelve a subir tras el alivio de septiembre y cierra octubre en el 4,99% · ELPAÍS.com (5% default rate, 1345 banks closed, and Citizens now owing more than they earn. These are ugly, ugly statistics in Spain.)
La deuda de las comunidades se dispara hasta el 7,9% del PIB · ELPAÍS.com (Municipality debt in Spain rose 33% in one year! You think the state budget problems are bad in the U.S., they are bad here as well.)

Utility Shutoffs Climb by 5% Despite Doubling of U.S. Aid – WSJ.com

Agencies in a Brawl for Control Over Banks – WSJ.com

Pimco’s Gross Boosts Cash to Most Since Lehman Failed – Bloomberg.com (I see this as a sign they are getting ultra-defensive. Interesting that Gross thinks Treasuries are a now a loser because of increased inflation expectations.)

States Scramble to Close New Budget Gaps – WSJ.com (Page one of today’s WSJ)

FT.com – Deutsche Bank to ‘globalise’ bonus pain

ECB Must End Moody’s ‘Bizarre’ Veto on Greek Debt, Goldman Says – Bloomberg.com

FT.com – German business confidence surges

London Luxury-Home Prices Climb Most Since May 2008 – Bloomberg.com

Jobless rate soars with 16pc of men now out of work – Independent.ie (emigration attenuating the pain in Ireland somewhat.)

Volatility of gold makes major producers best bet for smaller investors – Independent.ie

Greece hit by strikes as debt crisis grows | Business | guardian.co.uk

James Montier: Ten Lessons (Not?) Learnt

FT.com – UK rejects plans for OTC standardisation

Can Citigroup Flail Its Way to Solvency? — John Lounsbury

Distraction of the Day: Police officer tasers handcuffed suspect (this video is from November)

Although we don’t have the same quality audio here, it reminds me of the University of Florida student who was warned to stop resisiting arrest and then yelled out "Don’t tase me, bro" before he got tased. Is this the right approach?

(videos embedded above)