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Tuesday, January 1

1st Jan - Cliff postponed?




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EUROPE
New Year's Quiz: 40 trick questions about Europepresseurop
Frankfurter Allgemeine Sonntagszeitung, Frankfurt – Three years of the euro crisis, 2013 is around the corner, and you still have some questions? So does essayist Hans Magnus Enzensberger. The outspoken critics of the Brussels bureaucracy has been inspired to draw up a quiz – with, of course, entirely objective questions.

The ECB Is Not InfallibleEconoMonitor
To successfully fulfill her expanded supervisory responsibility the ECB needs to continue shedding her holistic view of the euro area and establish a supervisory culture in which differences between individual member states are recognized and addressed earlier and more forcefully than in the past.

Austerity has made Europe worse, says Cyprus President Demetris ChristofiasThe Telegraph
Cyprus President Demetris Christofias has hit out against the harsh austerity measures being meted out to struggling eurozone members as the Mediterranean island faces a bleak new year.

Europe’s New Year’s IrresolutionProject Syndicate
Joschka Fischer: Regardless of electoral outcomes in important EU member states, Europeans will remain unable to expect much from their political leaders in 2013, because opposition forces generally have little more to offer than the incumbents do. As a result, Europe will continue to need the pressure from the crisis in order to overcome it.

It's precisely 40 years since we became members of the EECThe Telegraph
Knowing what we now know, would we have joined?

UNITED STATES
Behold The Brains Behind Ben Bernanke's Binary Black BoxZH

US credit expansion driven by corporate lendingSober Look

Time to avoid US equitiesHumble Student

  FISCAL CLIFF
More hard evidence for fiscal negotiations impacting consumer sentimentSober Look

Your fiscal cliff deal cheat sheetWonkblog / WP
 
Wonkbook: Everything you need to know about the fiscal cliff dealWonkblog / WP

Five facts about the Biden-McConnell dealWonkblog / WP

The fiscal cliff deal: Short-term relief, and little elseFree exchange / The Economist

US Senate passes deal to avert fiscal cliffThe Telegraph
The Senate passed legislation early on New Year's Day to neutralise a fiscal cliff combination of across-the-board tax increases and spending cuts that kicked in at midnight.

Senate approves 'fiscal cliff' deal, crisis easedReuters
The Senate moved the U.S. economy back from the edge of a "fiscal cliff" on Tuesday, voting to avoid imminent tax hikes and spending cuts in a bipartisan deal that could still face stiff challenges in the House of Representatives.

Senate’s New Year’s Cliff Deal Shifts Pressure to BoehnerBB

‘Cliff Shock’ Joins List of Annual Economic RisksWSJ

OTHER
Japan Follow-UpTim Duy’s Fed Watch

Politics Not Economics Push FX into Year EndMarc to Market

10 new, must-read investing blogsMarketWatch