The LTROs may have helped ease this year's roll-over risk (Spain has met almost 50% of this year's refinancing needs). But they have not substantially altered the market's views of the risks of an eventual restructuring

Europe’s banks bleed from Greek debt crisis | Reuters Greece’s debt problems drove a slew of heavy losses across the European banking sector on Thursday, and bosses warned the euro zone crisis would continue to threaten earnings. tags: greece writedowns banks europe Everyone’s Trying to Track What You Do on the Web: Here’s How to

According to their own public comments, the EU, ECB and IMF do not have much confidence that their agreement with Greece will avert default. Instead they are apparently trying to isolate Greece, delay its eventual default, prevent contagion, and hope that somehow they can muddle their way out of a seemingly insoluble problem. Even at best, however, Europe will go through a recession, and possibly, a very deep one if everything doesn't go exactly right

By Marc Chandler

The euro was recovering in early Europe, moving back toward the upper end of its recent narrow range and it reversed course sharply, triggering stops along the way as it dropped nearly a cent to $1.2695. The technical failure yesterday at $1.2820 may also have been more telling. Despite the extend positioning and sentiment, what could have turned into a upside correction in the euro has not really gone beyond the consolidation (in the trough).

• Is Europe About to Unravel?
  

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This is a gold level post. I want to flag this as an issue since no one seems to be talking about it. Brazil's economy has slowed very sharply of late and along with slowdowns in India and China, it says that the global economy will get less incremental lift from emerging markers

By Finance Addict

During its last meeting of the year the Federal Reserve, via its interest rate-setting Open Market Committee, decided that it will start publishing forecasts of — wait for it — interest rates. That’s right, the FOMC is going to publish its own predictions for the very thing over which it has sole responsibility. What gives?

By L. Randall Wray

By Marc Chandler

The private sector involvement to reduce Greece’s debt burden remain unresolved. Officials continue to talk as if it will still be any day now. Some observers attribute the euro’s firmer tone today to greater confidence now that a new twist has been added.