Thursday, March 26, 2015

Thursday roundup (03-26-15)

[Global] Financial Markets Becoming More Fragile, Says Bank of England: Central bank joins regulators and investors voicing concern about market liquidity (The Wall Street Journal) BOE Sees Liquidity Dangers as Greece Threatens Market Stability (Bloomberg)

Risk-shy banks and companies keep euro zone credit on tight leash (Reuters)

Pressure rises on Greece as savers drain bank deposits (The Associated Press) Deposits in Greek banks fell by $8.60 billion in February: ECB data (Reuters)

Data show how Greek bank run loomed before bailout extension deal [The Financial Times via] (CNBC)

Greece maintains claim to 1.2 bln euros in euro zone bailout fund (Reuters)

What Alexis Tsipras Must Do to Keep Greece in the Eurozone: It will soon become clear [= in "the next few days"] if Greece is going to stay in eurozone. (The Wall Street Journal)

Saudi battle for Yemen exposes fragility of global oil supply: OPEC's oil giant has daggers drawn with Iran, is encircled by enemies, and now faces a failed state on its southern border by Ambrose Evans-Pritchard (The Telegraph)

Alberta Budget Deficit [in Canada's Biggest Oil-Producing Region] Soars to Record on Oil Collapse (Bloomberg)

The End of a Cycle in Latin America and its Associated Risks (The Brookings Institution)

Things that will happen if Venezuela implodes (CNBC)

U.S. Home Prices Are Surging 13 Times Faster Than Wages: You can blame investors for that (Bloomberg) Wage growth lags far behind home prices, report finds (The Los Angeles Times)

     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, 03-19-15)


A recovery would be indicated by weekly initial jobless claims holding below 500,000. ["'I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery,' said Linda Duessel, market strategist at Federated Investors in Pittsburgh." (Reuters)]

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 filed new applications for benefits at their state unemployment offices, known as initial claims, fell by 9,000 to a seasonally adjusted 282,000 in the period stretching from March 15 to March 21." (Marketwatch)

Jobless Claims in U.S. Decline to Lowest Level in Five Weeks (Bloomberg)

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, March 25, 2015

Wednesday roundup (03-25-15)

Is public debt a problem around the world?: Global debt—the money owed by the world's businesses, governments and households—now stands at almost $200 trillion. It has grown by almost $60 trillion since the global financial crisis of 2008. Almost half of that $60 trillion is made up of government debt. So should we be worried? Keri Phillips investigates. (The Australian Broadcasting Corporation)

Greece fails in bid for early cash release [to help stave off potential bankruptcy next month], reforms awaited (Reuters)

Taiwan Rate-Rise Forecasts Ditched Amid Deflation, Global Easing (Bloomberg)

Spending by U.S. businesses fell for a sixth straight month in February [Reuters via] (Fortune) Factories in U.S. Feel Pain of Rising Dollar, Slump in Oil (Bloomberg)

The Republican Budget Opens Taxpayers' Wallets to Bail Out Wall Street - Again (The Huffington Post)

Emergency Managers Say Atlantic City Must Make Big Budget Cuts: Report says city needs to slash workforce, make other cuts to close $101 million budget shortfall (The Wall Street Journal) Atlantic City bankruptcy ‘inevitable’, source says (PolitickerNJ)

Wells Fargo to cut 1,000 jobs, shut Milwaukee home-lending office (Reuters)

GE expands job cuts at Lufkin oil unit to 575 from 330 (Reuters)

Worthington Industries to lay off 555 nationwide, including 80 in Fairfield County: Strong dollar, reductions in oil and gas industry pressure company (The Columbus Dispatch of Columbus, Ohio)

     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, March 24, 2015

Tuesday roundup (03-24-15)

The world's next credit crunch could make 2008 look like a hiccup: Is this why central bankers are so scared of raising interest rates? (The Telegraph)

Economic Crisis in France: France doesn't seem able to escape its debt troubles. Despite that, the European Commission has given the country more time to reduce its deficit – but that hasn't stopped the brain drain of young professionals. (Deutsche Welle)

Greece to run out of cash by April 20 without fresh aid - source (Reuters)

George Soros: Greece is now a lose-lose game: It's possible that the troubled country will leave the eurozone, according to the billionaire investor (The Telegraph)

Ukraine Credit Rating Cut to Second-Lowest Level by Moody’s (Bloomberg)

Ukraine needs 'significant' debt reduction: source close to debt talks (Reuters) Ukraine pleads for quick restructuring of debts: Finance minister Natalie Jaresko wants to see debt cut and interest on remainder reduced so Ukraine can move towards stability (The Guardian) Ukraine Asks Creditors to Reach Deal Now or Risk Bigger Cuts (Bloomberg) Kremlin heads for collision course with Ukraine over debt haircut: Kiev’s finance minister insists the country has no choice but to restructure $3bn owed to Moscow (The Telegraph)

Fed's Bullard says zero U.S. rates no longer appropriate (Reuters) Fed's Bullard sees roaring boom for US economy, but nasty shock for markets: Investors are betting that the Federal Reserve will take its time before pulling the trigger on interest rate rises. Fed insiders warn that this may be a mistake. by Ambrose Evans-Pritchard (The Telegraph)

The Economics of California's Drought: What happens when the country's largest state runs low on water? (The Atlantic)

Poland's Alior to lay off up to 1,000 workers after merger with Meritum (Reuters)

     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, March 23, 2015

Monday roundup (03-23-15)

Central Banks Warn of Bad Outcomes as Weak Inflation Goes Global (Bloomberg)

REPORT: Greece's government has only 2 weeks until the money runs out (The Business Insider)

'Impossible' for Greece to service debt, Tsipras warns Merkel: FT (Marketwatch)

Tsipras, Merkel display goodwill, little sign of debt progress (Reuters)

Despite Regulatory Advances [in the United States], Experts Say Risk Remains a Danger to Large Banks (The New York Times blogs)

     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, March 22, 2015

Sunday roundup (03-22-15)

Sarkozy staves off the French far right (The Independent)

Greek PM warns Merkel of 'impossible' debt obligation: FT (Reuters)

In Greece, Syriza Struggles to Deliver Promises as Money Runs Out (The New York Times)

Falling energy and food prices push UK towards deflation: Analysts expect inflation is likely to have fallen to 0.1% with some predicting that figures could show a negative reading (The Guardian) Households set for spending power boost as inflation is set to near ZERO per cent - but spectre of deflation hangs over Britain (This is Money)

Britons borrow more than ever before: The economic recovery and increased job security has seen borrowing exceed pre-recession levels, Pricewaterhousecoopers says (The Telegraph) Average UK household to be £10,000 in debt by end of 2016: Report warns that people’s complacency over their ability to manage their borrowing could lead to resurgence in bad debt (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.

Saturday, March 21, 2015

Saturday roundup (03-21-15)

Liquidity crisis could spark the next financial crash: Traders warn of a global credit 'meltdown' if corporate bond markets don't improve (The Telegraph)

World faces 40% water shortfall in 15 years: U.N. (Marketwatch)

France is Europe's 'big problem', warns Mario Monti: Gallic nation threatens to blow Europe's Franco-German axis apart, warns former Italian prime minister (The Telegraph)

Early Greek election, referendum possible if EU rejects debt plan: Varoufakis (Reuters) The bailout crisis: Germany’s view of how Greece fell from grace: Athens’ defiance of austerity demands and recalling of wartime atrocities have angered Germans already worried about rising nationalism and economic decline. (The Guardian) The bailout crisis: why Greece is content to put the blame on Germany: Berlin is cast by Athens as the fount of its troubles, but Greek politicians must bear part of the blame (The Guardian)

Greece Continues That Slide Towards Grexident [= Greece leaving the Euro by accident] (Forbes)

Protesters march against austerity measures in Madrid: ‘March for dignity’ comes on the eve of a closely-watched regional election in Andalusia in southern Spain (The Guardian)

Students protest in Montreal over government austerity measures (The Montreal Gazette)

[In the United States,] FDA approves genetically modified apples and potatoes for consumption (The Los Angeles Times)

Download the True Food Shopper's Guide: How to Avoid Foods Made with Genetically Modified Organisms [GMOs] (The Center for Food Safety) Say "No" to GMOs (Non-GMO Project) THE GREAT GMA COVERUP INFOGRAPHIC (WalkByTheWay) GMO Free USA (Facebook) Millions Against Monsanto by OrganicConsumers org (Facebook)

     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.