Thursday, August 21, 2014

Is it a recovery yet? (Weekly report, 08-21-14)

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.)

"Initial jobless claims declined by 14,000 to 298,000 in the week of Aug. 10 to Aug. 16, the Labor Department said Thursday." (Marketwatch)

U.S. jobless claims fall, bolster labor market outlook (Reuters)

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, August 20, 2014

Wednesday roundup (08-20-14)

Nobel economists say policy blunders pushing Europe into depression: German Chancellor Angela Merkel defends eurozone and says it is hard to manage a currency for 18 states by Ambrose Evans-Pritchard (The Telegraph)

Ambrose Evans-Pritchard: Euro Woe’s (McAlvany Weekly Commentary)  (Youtube)



Worse than the 1930s: Europe’s recession is really a depression (The Washington Post blogs)

QE will not be a magic potion for Eurozone woes: While the ECB takes comfort from what consumers say they expect inflation to be over the long term, a look at expectations as expressed in the bond markets shows a different picture (GulfNews)

There's only one cure for the eurozone's terminal disease [= allow the euro to collapse] (Business Spectator)

Angela Merkel scolds Italy and France over the faltering eurozone recovery: German chancellor claims stifled growth is due to countries running high deficits and breaking fiscal rules set by Brussels (The Guardian)

France Acknowledges Economic Malaise, Blaming Austerity (The New York Times)

As European deflation risks rise, Italy stands to suffer more (Xinhua)

Bank of England splits over rate hike for first time in 3 years (Reuters)

Household debt could tip [UK] economy back into recession (EveryInvestor)

Fed debates merits of earlier rate hike given U.S. jobs gains (Reuters)

'Severe' drought covers nearly 99.8% of California, report says (The Los Angeles Times)

Staples to Shut 140 Stores This Year as Sales Decline (Bloomberg)

What exactly is the Market Basket board doing? (The Boston Globe) Being of Service: Why Meaning and Mission Matter in Business (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, August 19, 2014

Tuesday roundup (08-19-14)

Too little reform, central bank risk and banking fraud - have we [in Europe and the US] not learnt anything?: The Federal Reserve has become a rogue hedge fund, taking massive, wildly speculative positions (The Independent)

ECB in policy limbo, boxed in by its own plans (Reuters)

European Austerity Is a Myth (BloombergView)

Recovery Mirage in Spain Dissipates Into Ashes (Mish's Global Economic Trend Analysis blog)

UK inflation falls more than expected; 2014 rate rise less likely (Reuters)

[And also in the United States,] Key Measures Show Low Inflation in July (Calculated Risk blog)

Nearly Half of Americans Think the Recession Is Not Over (Bloomberg)

'Is it safe to hire?' Business owners don't trust recovery (CNNMoney)

Uneven Housing Data Likely Still Concerning for Fed: New home construction is up 21.7 percent from a year ago, but demand isn't where economists had hoped. (U. S. News & World Report)

Should big banks be broken up?: YES: It would help regulation and diminish risk (The Sun Sentinel of Fort Lauderdale, Florida)

     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.

Monday, August 18, 2014

Monday roundup (08-18-14)

Draghi is running out of legal ways to fix the euro: The ECB has signalled that it is safe to bet against the inflation target (The Financial Times)

France’s missed deficit targets bad for eurozone (FT Adviser)

The Italian Runaway Train (Credit Writedowns blog)

Are We [in the US] Entering A Recession? (Forbes) Is the U.S. economic recovery almost over — already?: History does not provide a lot of comfort (The Week)

Hunger in America: 1 in 7 rely on food banks (USAToday)

36% of adults lack retirement savings -- 14% of them 65 or over (The Los Angeles Times)

Lawmakers: Fed leaves door open to 'backdoor bailout' in future (The Hill) Lawmakers slam Fed's crisis lending proposal (Reuters)

PricewaterhouseCoopers Unit to Pay $25 Million Fine (The Wall Street Journal blogs)

Monarch to cut 1,000 jobs as airline seeks take off as low-cost carrier: [British] Charter airline will shed third of staff and sell off planes as it attempts to reinvent itself as low-cost European scheduled flyer [Reuters via] (The Guardian)

     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.

Sunday, August 17, 2014

Sunday roundup (08-17-14)

Sliding Towards Deflation [in the Eurozone] (National Review)

Fears of Renewed Instability as Fed Ends Stimulus (The New York Times) [versus] Why The Fed Can't, And Won't, Let The Stock Market Crash (ZeroHedge blog)

Jamie Dimon’s $13 Billion Secret: The inside story of JPMorgan Chase’s landmark mortgage settlement (The Nation)

     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, August 16, 2014

Saturday roundup (08-16-14)

California’s Record Heat Is Like Nothing You’ve Ever Seen... Yet (Bloomberg)

Unofficial Problem Bank list declines to 447 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, August 15, 2014

Friday roundup (08-15-14)

Europe’s Greater Depression is worse than the 1930s (The Washington Post blogs)

Europe risks deeper economic crisis as Russia buckles and defaults mount in Ukraine: Ukrainian attack on Russian convoy triggers stock market sell-off and flight to safety by Ambrose Evans-Pritchard (The Telegraph)

Russia’s secret weapon against Europe: Deflation (Quartz)

Japan not out of deflation yet: economy minister (Agence France Presse)

Fight Brews [in the United States] on Changes That Affect Derivatives (The New York Times blogs)

Deere to cut more than 600 factory jobs: Move comes two days after the farm equipment maker reported a 15% drop in fiscal third-quarter profit. (Fortune)

     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.