Europe

On Sunday, when we previewed the latest last-ditch effort to rescue Italy's third largest bank when Monte Paschi launched a 4-day attempt to sell €5 billion in equity to anchor and retail investors, we said that "in the otherwise quiet pre-Christmas week, all eyes will be on Monte Paschi, and specifically the intentions of the alleged anchor investor, Qatar (and perhaps a handful of Chinese banks), to determine if Italy's banking crisis is "fixed" if only for the near future, or if the new year is set to begin with another "risk flaring" episode out of the Italian banking sector as Monte Pa

By Chris at www.CapitalistExploits.at

When I was a boy I would read voraciously, everything. Under the covers in bed with a flashlight, and under the desk in class at school. Now years later I recognise it's not necessary to be taught to learn, it happens if people will get out of your damned way. As kids we all want to learn but some lose the excitement, and I pity them. Those that keep the enjoyment and excitement have a distinct edge!

Authored by Scott Kristoff via Avondale Asset Management,

We started this year with the economy deteriorating and finished it with the second interest rate increase in ten years.  There were a lot of ups and downs along the way, but ultimately 2016 was defined by three key story-lines:  1) Brexit 2) The Presidential Election 3) Fed Policy.

Submitted by Jennifer Thomson via Gavekal Capital blog,

Submitted by Brendan Brown via The Mises Institute,

Markets have not been slow to see through the hollowness of the European Central Bank's announced (on December 8) curtailment of the pace of money printing planned for April next year. The ECB plans to reduce its “stimulus” from 80 billion euros per month down to 60 billion euros per month. But, it plans to do this for nine months before any further review — rather than the usual 6-month fixed period until further review.