Europe: Acte 3 prise 1!

Treasury plans for euro failure (UK)
“The Government is considering plans to restrict the flow of money in and out of Britain to protect the economy in the event of a full-blown euro break-up.”
ECB reports record cash deposits from banks
“The latest jump in deposits comes from cash lent to the banks by the ECB itself last week in order to ward off a fresh banking crisis and credit crunch.”

LTRO “Bazooka” Is Epic Disaster As Banks Scramble To Redeposit “Free Carry” Cash With ECB, Lose Money On “Inverse Carry” (ZH)

Italy Could Trigger Early End to Santa Claus Rally

Italians Cut Spending in Worst Christmas in 10 Years; Debt in Spanish City of Gandia 50% Higher than Previously Reported; Harsh Times Ahead for All Europe (Mish)