Europe Update

The slow motion train wreck continues in Europe.

From the NY Times: Europe Staggers as Critical Summit Looms

Europe’s smoldering financial crisis flared up on Wednesday, with riots over austerity spending in Greece, new signs of troubles in Spain and little indication that European leaders were moving any closer to agreement on a systemic approach to long-term stability.

The day’s events emphasized the complex social, political and economic challenges facing government leaders at a European Union summit meeting on Thursday and Friday in Brussels.

And from the Financial Times: German MPs clash on future of eurozone

The question is when the crisis will flare up again - and where (Spain?)

Earlier today:
• Mortgage Applications decline, Mortgage rates rise sharply
• The Empire State Manufacturing Survey showed expansion
• Industrial Production, Capacity Utilization increased in November
• NAHB Builder Confidence Flat in December
• Tax Legislation Passes in Senate 81 to 19
• Inflation: Core CPI, Median CPI, 16% trimmed-mean CPI remain below 1% YoY

Thursday:
• 8:30 AM: The initial weekly unemployment claims report will be released.
• 8:30 AM: Housing Starts for November.

Best to all