Global Macro Monitor

The extra yield investors demand to hold Spanish 10-year debt instead of similar-maturity German bonds shrank below 2 percentage points for the first time since May 2011. Spanish unemployment fell 107,570 last month, the biggest decline since June, the Ministry of Labor said. Italy’s bonds also rallied, with 10-year yields dropping to the lowest since May. Germany’s benchmark 10-year bund yield was about three basis points from the highest level since September.   – Bloomberg

Spanish Bond Yield Falls to 3 1/2-Year Low as Unemployment Drops – Bloomberg
The Fallacy of Low P/E Ratios – ETF Guide
Will the S&P’s rally hurt capitalism? – Simon Hobbs, CNBC
Housing market could be facing another bubble: Shiller – CNBC
Why optimism may be bad news – Economist
GOLDMAN: Here Are 40 Great Comeback Stocks For 2014 – Business Insider
The World Economy’s Shifting Challenges – George Soros
Bernanke bows out with upbeat view – FT
Detroit Emergency Manager Calls Swaps ‘Ticking Time Bomb’ – Bloomberg
The Pope Is Right: Inequality Is Unjust – Christopher Robichaud, Bloomberg
December Auto Sales Miss Estimates as Cold Slows Shoppers – Bloomberg
Fitness Apps Eclipse 3-D TVs as Digital Health Reaches CES: Tech – Bloomberg
CES Matters Now More Than Ever – Bloomberg
Financial and Sovereign Debt Crises:
Some Lessons Learned and Those Forgotten – Reinhart and Rogoff,  IMF