by Calculated Risk on 8/23/2012 09:04:00 PM

First, my friend Tom Lawler has been very kind and allowed me to excerpt pieces from his daily newsletter to share with everyone. The Lawler's beloved horse "Dealer" has had some lameness issues this year, and to cheer up his wife (and himself) Tom entered Dealer in a local best pet contest and hopes to surprise his wife with "Dealer" being named best pet. Right now Dealer is trailing in the voting, and Tom needs your help. If you could spare a few seconds, please go to this site and vote for "Dealer". Thank you so much!

A few articles on global issues ...

From the NY Times: French and German Leaders Meet as Fresh Signs Point to Regional Recession

Returning to business after their summer breaks, the German and French leaders met here Thursday to discuss the continuing crisis in the euro zone, even as fresh economic data reinforced fears that the region was sliding into recession.

From the NY Times: China Confronts Mounting Piles Of Unsold Goods

After three decades of torrid growth, China is encountering an unfamiliar problem with its newly struggling economy: a huge buildup of unsold goods that is cluttering shop floors, clogging car dealerships and filling factory warehouses.

The glut of everything from steel and household appliances to cars and apartments is hampering China’s efforts to emerge from a sharp economic slowdown. It has also produced a series of price wars and has led manufacturers to redouble efforts to export what they cannot sell at home.

From the Financial Times: Athens and Berlin in spat over funds

Leaders in Athens and Berlin wrangled publicly over how to deal with Greece’s plea for further assistance as fears of a renewed eurozone recession mounted yesterday.
...
Wolfgang Schäuble, finance minister, said on German radio that there was “understanding” for Athens’ predicament, but giving it more time was “not the solution”, adding: “More time implies . . . more money.”
excerpt with permission

On Friday:
• At 8:30 AM ET, Durable Goods Orders for July from the Census Bureau. The consensus is for a 1.9% increase in durable goods orders.

• At 10:00 AM, the Worker Displacement report from the BLS for January 2012 will be released. This report will probably receive some attention because of weak labor market.

• Europe Note: the Spanish Government is expected to announce the details of the bank bailout. Also on Friday, Greek Prime Minister Samaras and German Chancellor Merkel will meet in Berlin with a press conference to follow.

Earlier:
• New Home Sales increase in July to 372,000 Annual Rate
• New Home Sales and Distressing Gap
• New Home Sales graphs