Sunday, September 21, 2014

Sunday roundup (09-21-14)

Global Finance Chiefs Said to Warn of Growing Economic Risks (Bloomberg)

Europe Needs More Fiscal Stimulus, Canada’s Oliver Says (Bloomberg)

Italy debt burden is a problem for us all: We need extreme and co-ordinated policy to make it possible for Italy to ultimately stay in the eurozone (The Financial Times) Italy says inefficiency delays public sector debt repayments (Reuters) The solution to Italy’s woes is quite simple – leave the euro: Unless something big starts to change soon, Italy is on course for the mother and father of a sovereign default (The Telegraph)

Ukraine Is On The Brink Of Total Economic Collapse (The Business Insider)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Saturday, September 20, 2014

Saturday roundup (09-20-14)

Now back to the big question: what's wrong with the eurozone?: There are worrying forecasts that the entire bloc  will show barely any growth for the next five years (The Independent)

Systemic risk in Europe: Too big to save (Vox)

ESM's chief says EU, IMF in no mood for a Greek debt haircut (Reuters)

Obama’s growth recession continues (Communities Digital News)

Unofficial Problem Bank list unchanged at 435 Institutions (Calculated Risk blog)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Friday, September 19, 2014

Friday roundup (09-19-14)

Quote of the Day:

[Speaking of the importance of money lending to offspring by baby-boomer parents in the US:] "Without them, the [housing] recovery’s not sustainable." -- Anika Khan, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina (Bloomberg

Another financial crisis is inevitable: Martin Wolf (Yahoo! Finance


Scotland Rejects Independence as U.K. Vows to Give It More Power (Bloomberg) Scotland stays in UK, but Britain faces change (Reuters) Scotland’s Independence Vote Shows a Global Crisis of the Elites (The New York Times

Most Of The U.S. Saw Little Recovery In 2013 (FiveThirtyEight

Why the Great Recession was even worse than you thought (MinnPost

The Fed Fesses Up: After Printing $3 Trillion It Sees No “Escape Velocity”……Ever! [Wolf Street via] (David Stockman's Contra Corner blog

College Debt Leaves Generation X Grads Less Wealthy Than Parents (Bloomberg

Watch California Dry Up Right Before Your Eyes In 6 Jaw-Dropping GIFs (The Huffington Post

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Thursday, September 18, 2014

Thursday roundup (09-18-14)

Quote of the Day:

"The economic outlook has deteriorated markedly. The global economy isn’t as robust as we’d expected three months ago." -- Swiss National Bank President Thomas Jordan (Bloomberg)

Global Inflation Continues to Fall (Pragmatic Capitalism) 74% of all Municipals want to raise Taxes – Hello DEFLATION! (Armstrong Economics)

Subprime Is Back With A Vengeance (The Automatic Earth blog)

IMF warns of new threats to global economy due to excessive risk taking: Geopolitical tensions and increased risk taking add to disruption, though world economy expected to pick up during 2015 (The Guardian) IMF warns of risks from 'excessive' financial market bets (Reuters)

The Latest Effort To Save The Eurozone Falls Flat On Its Face (The Business Insider) A Bad Start For The ECB's New Easing Operations Leaves It Short Of Options (Forbes)

Germany skids closer towards deflation (The Financial Times)

Swiss central bank ready to act 'immediately' as deflation risks resurface (Reuters)

Hollande Says French Competitiveness Is Priority Over Deficit (Bloomberg)

IMF: Italy Has Yet to Emerge From Recession (International Business Times) Italy to Remain in Recession This Year, Says IMF: Fund Urges Premier Matteo Renzi to Implement His Economic Reform Agenda to 'Unleash Growth' (The Wall Street Journal) IMF cuts Italy growth outlook, hikes deficit, debt (Reuters)

Italy’s Growing Debt Looms Over European, and Global, Economies (The Wall Street Journal blogs)

Yellen Says US Families Need to Boost Savings (The Associated Press) Yellen: Many Americans remain 'extraordinarily vulnerable' to economic trouble (The Hill)

We Still Don’t Know What $1.6 Trillion [of Quantitative Easing] Bought Us (FiveThirtyEight)

The U.S. Debt: Why It Will Continue To Rise (Forbes)

'This is the end' for Sears: Credit Suisse (CNBC)

Ericsson to shut modem business, 1,000 jobs to go (Reuters)

Sony Predicts $2.1bn Loss On Smartphone Woes [with "roughly 1,000 staff losing their jobs"]: The company cuts the value of its phone business and pledges a future focus on premium devices after losing out to rivals. (SkyNews)

Warner Bros. Expected to Cut as Many as 1,000 Jobs (Variety)

Toshiba says to cut 900 jobs in PC restructuring (Reuters)

General Mills to close plants, cut 500-plus jobs, in Calif., Mass. (The Pioneer Press of St. Paul, Minnesota)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Is it a recovery yet? (Weekly report, 09-18-14)

A recovery would be indicated by weekly initial jobless claims holding below 500,000. (See this post.)

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"The number of people who applied for jobless benefits dropped 36,000 to 280,000 in the week that ended Sept. 13, hitting the lowest level since mid-July, signaling that employers are laying off very few workers, according to government data released Thursday." (Marketwatch) "This was ... in the normal range for an economic expansion." (Calculated Risk blog)

Weekly unemployment claims plunge to 280,000, near a 14-year low (The Los Angeles Times) "Following the report, Ian Shepherdson at Pantheon Macro said: 'With the exception of the week of July 19, when claims were distorted by the automakers' shutdowns, this is the lowest reading since May 2000.'" (The Business Insider)

SEE LAST WEEK'S POST HERE.

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Wednesday, September 17, 2014

Wednesday roundup (09-17-14)

Eurozone inflation weak as currency bloc stuck in ‘danger zone’: While stronger than analysts expected, weak price growth threatens to make the debts of eurozone countries much harder to pay (The Telegraph)

Fitch Warns That Europe Could Be Facing A 'Doom Loop' (The Business Insider) The Case For Worrying About European Deflation (The Wall Street Journal blogs) Why deflation is so terrifying for Europe (Global Post)

French economy is 'sick', says new economy minister (France24)

Bank of England: Ailing Eurozone Threatens UK Economic Recovery (International Business Times)

Afghanistan asks Washington for $537 million bailout (FoxNews)

Fed will end QE next month, 'considerable time' remains [before interest rate rises] (CNBC)

The U.S. National Debt Has Grown By More Than A Trillion Dollars In The Last 12 Months (ZeroHedge blog)

U.S. consumer prices post first decline in nearly 1-1/2 years (Reuters)

The economic recovery is historically terrible for the middle class (The Washington Post)

One in 10 Americans’ paychecks get docked to pay off debts (Marketwatch)

Citigroup Embraces Derivatives as Deals Soar After Crisis (Bloomberg)

Occupy Abolishes Almost $4,000,000 in Student Debt, Enrolls Campus Activists, Announces Nationwide 'Debt Collective' (The Huffington Post)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.

Tuesday, September 16, 2014

Tuesday roundup (09-16-14)

Italy employers slash GDP forecasts, hike deficit, debt (Reuters)

Dutch Ease off Austerity, Will Spend on Military (The Associated Press)

More austerity, reforms ahead for Finland, PM Stubb says (Reuters)

Russia needs government investment to avoid recession, says former finance minister (Reuters) Russia sanctions risk lasting damage to Europe’s shaky economy: Germany takes hit as U.S., EU target Moscow’s banks, defense and energy companies (The Washington Times)

New data shows Americans' incomes still stagnant after recession (Reuters)

Another US recession may be coming … sooner than you think: Economists warn contraction in emerging market economies could cause another economic slump in 2015 (Al Jazeera)

Third quarter US growth outlook cloudy: Survey (CNBC)

Pioneer to cut 2,000 jobs in bid to restructure (Kyodo)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats exist today that could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. Key threats include excessive risk-taking by financial firms, unchecked by effective regulation; the continued existence of "too big to fail" institutions; and most especially, the amassing of levels of public and private debt which could become unsustainable.