The first order is to have a stiff drink…lol; then choose very carefully!

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Hussman comments on the recent European scheme…

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Looks ripe for the pillaging

Finland will only sign “when hell freezes over” 

Predictions from David Zervos

Gapping up 

ENDP +9.5% , ARRY +4.3%, ARIA +2.3%,  OXGN +23.4%, GNRC +1.4% , THQI +6.5%,

Gapping down

ING -7.8%, STD -2%, BP -1.9%,  SDRL -1.5%, ASML -1.4%, DB -3.5%, SLV -3%, TOT -3%, HBC -2.5%,

FRO -3.8%, MT -3.8%, STO -3.6%,  E -2.1%,

Source

In Play

On the Wires

“Additional tensions are likely to surface as leaders return to their domestic constituencies and, importantly, as the summit’s broad agreements get translated into specifics. This is not only about stress between the 17 eurozone countries and the 10 other members of the European Union (such as Britain) that are not members of the zone. It is also about frictions within each group,”

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ZH’s best work to date.

In an unprecedented move, CNBC host, Jim Cramer, announced he was “going to DEFCON 2” on the markets because of the European “situation.” Obviously, his advice is to pair DEFCON 2 with an underground bunker and dry foods.

In one of the gloomiest predictions about the fallout from a breakup of the euro, Citigroup’s chief economist on Thursday warned a collapse of the currency will result in years of a global depression that could send unemployment spiking above 20% in the West.

The comments, from Citigroup chief economist Willem Buiter, underscore the growing concern that policymakers won’t be able to forge a credible solution that will keep the currency union intact.

Buiter, previously a professor at the London School of Economics, said the ensuing chaos caused by the unlikely event of a disorderly sovereign default and exit by all five periphery nations would trigger a financial catastrophe and global depression. The disaster, he said, would send GDP plummeting more than 10% and unemployment in the West surging to 20% or more.

“If Spain and Italy were to exit, there would be a collapse of systemically important financial institutions throughout the European Union and North America and years of global depression,” Buiter wrote.

Thankfully, Buiter sees little chance of these worst-case scenarios actually coming to fruition. He forecasts a 5% or lower chance of a disorderly default and exit by all five periphery states.

Likewise, Buiter believes the likelihood of an exit by Germany and other fiscally strong countries is even less likely, attributing a less than 3% probability of such an event. That’s a good thing because he believes this outcome would perhaps be even more disastrous and extremely messy from a legal standpoint.

Still, the financial markets appear to be bracing for at least the possibility that the eurozone will no longer have 17 nations.

Hurt by comments from the ECB, the euro slumped nearly 1% against the dollar and fell below $1.33 on Thursday. Individual European bank stocks like Deutsche Bank (DB: 28.25, -1.28, -4.32%) and Barclays (BCS: 11.36, -0.67, -5.57%) suffered steep selloffs as well.

According to The Wall Street Journal even some central banks are take precautionary steps to prepare for life without the euro, including central banks in Ireland, Greece, England and Switzerland.

If the only nation to leave the currency and suffer a disorderly sovereign default was Greece, Buiter said it would be “manageable” because it accounts for just 2.2% of euro-area GDP.

Ultimately, Buiter said the potential for economic ruin should present a compelling argument for keeping the eurozone intact as much as possible.

“The case for keeping the Euro Area show on the road would seem to be a strong one: financially, economically, and politically, including geopolitically,” he wrote.
Read more: http://www.foxbusiness.com/economy/2011/12/08/citi-euro-collapse-would-cause-global-depression-send-unemployment-above-20/#ixzz1fy0fqlhN

Source

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Thursday morning.

Brightpoint Inc. (NASDAQ: CELL) Reiterate as Buy with a $14 price target objective at Canaccord Genuity.
Cisco Systems Inc. (NASDAQ: CSCO) Reiterated as Buy with $24 price target objective at Argus.
Deckers Outdoor Corporation (NASDAQ: DECK) Reiterated as Buy with a $122 price target objective at Canaccord Genuity.
Diamond Offshore Drilling Inc. (NYSE: DO) Started as Sell with a $70 target price objective at Goldman Sachs.
France Telecom (NYSE: FTE) Cut to Underperform and named as Bear of the Day by Zacks Investment Research.
Hatteras Financial Corporation (NYSE: HTS) Cut to Neutral at Stern Agee.
Healthways Inc. (NASDAQ: HWAY) Raised to Buy at Stifel Nicolaus.
Hercules Offshore, Inc. (NASDAQ: HERO) Started as Neutral at Goldman Sachs.
Las Vegas Sands Corp. (NYSE: LVS) Cut to Neutral at Janney Capital Markets.
Lululemon Athletica Inc. (NASDAQ: LULU) Reinitiated as Buy at Stern Agee.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) Raised to Outperform from Neutral at Credit Suisse.
NRG Energy, Inc. (NYSE: NRG) Cut to Neutral from Buy at UBS.
Philip Morris International, Inc. (NYSE: PM) Cut to Neutral from Buy at Nomura.
Schlumberger Limited (NYSE: SLB) Started as Neutral at Goldman Sachs.
Sonic Automotive, Inc. (NYSE: SAH) named as value stock of the day by Zacks Investment Research.
State Auto Financial (NASDAQ: STFC) Raised to Buy from Neutral at Janney Capital Markets.
Veolia Environnement S.A. (NYSE: VE) Cut to Hold from Buy at Deutsche Bank.
VeriSign, Inc. (NASDAQ: VRSN) Raised to Outperform and featured as the Bull of the Day by Zacks Investment Research.
Weatherford International Ltd. (NYSE: WFT) Started as Buy with a $22 price target objective at Goldman Sachs.
Yum! Brands, Inc. (NYSE: YUM) Reiterated Buy with $65 fair value target at Janney Capital Markets.

Gapping Up

LULU +1.5%, PSUN +44.4%, AXL +3%, GIII +21.3%, CJES +6.8%, CEDC +9.6%,  MCD +1.4%, ENB +0.5%,

AZN +1.4%, GSK +1.4%, AFFY +25.4%, CJES +6.8%, ARMH +1.6%,  USB +0.9%,  EQT +3.2%,  BA +2%, POT +0.9%,

Gapping Down 

RIG -1.3%, THQI -12.3%, SNH -1.5%, CLWR -7.9%, TSLA -7.9%, EPD -2.7%, ARR -2.4%, CREE -2.2%, BP -1.2%,

TSLA -8.3%, HNR -7.6% ,  ARR -2.4%, ALXA -34.3%, WFR -3.1%, AMR -10.7%, SAVE -4.3%, COST -1.9%,

In Play

On the Wires

Quite a chilling prediction to say the least… 

There is rumor of rumors involving the EU tossing in 150 billion Euros to the IMF to leverage. What ever the amount below 1 trillion euros; it will not be enough to impress markets.

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You know what the Scottish would say….