Monday, September 1, 2014

Monday roundup (09-01-14)

STEPHEN ROACH: The Current Speed Of Global Growth Comes With A Major Problem (The Business Insider)

Financial reforms [in the Western world] will make the next crisis even messier: Unlike a bailout, bailing in creditors will inflict losses on other institutions, writes John Plender (The Financial Times)

Eurozone recovery hopes dashed by poor manufacturing data: A surprisingly weak survey of euro area manufacturers points to another difficult quarter for the currency bloc (The Telegraph) Euro zone manufacturing slows to 13-month low (CNBC) ['The economic slowdown which began in the euro-zone core in spring is spreading,' said Christian Schulz, an economist at Berenberg Bank in London."] (Bloomberg) Europe’s Manufacturing Malaise Was Not in Policymakers’ Playbook (The Wall Street Journal blogs)

Austerity debate flares as Europe recovery fades (The Associated Press)

Draghi’s Deflation Warning and the QE Obstacle Course (Bloomberg)

France Asks for More ECB Action to Weaken Overvalued Euro (Bloomberg)

France, Welcome to the Negative Yields Club (The Wall Street Journal blogs)

Hollande, Draghi agree on threat of deflation: official (Reuters)

German GDP Shrinking Signals Fading Euro-Area Powerhouse (Bloomberg)

German austerity ‘obsession’ is wrong: Economist [Steve Keen] (CNBC)


Central European PMIs point to slowdown as sanctions hit sentiment (Reuters)

Ukraine Warns of Europe’s Worst Conflict Since World War II (Bloomberg)

UK manufacturing growth ebbs, denting hopes for balanced recovery (Reuters) UK economic recovery? It just can't get any better, any time soon: Latest PMI figures showing UK manufacturing activity slowing suggests the sector has reached full capacity (The Guardian)

China manufacturing output slows in August (Marketwatch) China Loses Growth Momentum as Manufacturing Pulls Back (Bloomberg)

Labor Day anxiety: Will wages ever start rising?: Despite five years of economic recovery, wages by some key measures are merely matching inflation. That's different from post-recession rebounds in the 1980s and 1990s. (The Christian Science Monitor)

Ambrose Evans-Pritchard - 'America more financially powerful' [but ... "we've got to get out of this mess"] (Youtube)



     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 31, 2014

Sunday roundup (08-31-14)

Quote of the Day:

"Yes, eventually we’ll have a collapse or deflationary bust in asset markets. That’s inevitable. Printing money can postpone such a collapse but eventually the bust will occur. Every inflation, whether consumer price inflation or asset inflation, eventually comes to an end." -- Marc Faber, editor and publisher of The Gloom Boom & Doom Report (Global Gold)

World Inflation Makes 56-Month Low (GaveKal Capital blog)

[David] Stockman - Unprecedented Global Financial Wipeout Is Coming (King World News)

European bank officials weigh QE 'shock and awe' (CNBC) Investors' eyes pinned on ECB as Europe's health deteriorates (Reuters) Abenomics, European Style by Nouriel Roubini (Project Syndicate)

Germany must lead the way to eurozone growth: The country's establishment doesn’t seem to have grasped that what is good for one part of the system is not necessarily good for the system as a whole (The Telegraph)

IMF approves bailout payment to Ukraine (Marketwatch)

Is the Recession Really Over [in the United States]? (The Huffington Post)

Slow wage growth threatens California economic recovery, report finds (The Los Angeles Times)

Report: Recession isn’t over for many NC workers (The Charlotte Observer of Charlotte, North Carolina)

     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 30, 2014

Saturday roundup (08-30-14)

Eurozone anxiety overshadows EU summit (The BBC)

Eurozone fears of stagnation grow as France and Italy suffer: A stubborn lack of growth, rather than collapse, is now the enemy. But agreement is elusive (The Observer)

Greece looks to debt relief in EU-IMF talks (Agence France Presse)

Why Italy’s stagnation could be the future for the entire eurozone: Monetary reform alone can’t kickstart the European economy. It needs something more radical (The Guardian)

This pope means business: The wildly popular Francis is more than a pontiff of the people. He’s an elite manager who’s reforming the Vatican’s troubled finances. (Fortune)

Brazil's economy falls into recession, latest figures show (The BBC) ["'It's another headwind for Argentina, at exactly the wrong time,' said Neil Shearing, chief emerging markets economist at Capital Economics."] (The Associated Press)

[In the United States,] Unofficial Problem Bank list declines to 439 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 29, 2014

Friday roundup (08-29-14)

Eurozone gripped by deflation fears as inflation rate hits five-year low: ECB chief Mario Draghi is under pressure to act but experts say immediate measures are unlikely (The Guardian)

Disappearing euro zone inflation set to heighten ECB concerns (Reuters) Euro Inflation Slows as Draghi Hints at More ECB Stimulus (Bloomberg)

Eurozone Unemployment Holds at 11.5% as Inflation Nears Five Year Low (International Business Times)

Divisions Grow as a Downturn Rocks Europe (The New York Times)

The Eurozone Is A Growing Problem For The U.S. Economy (Forbes)

Don’t expect Germany to be Europe’s saviour – its economy is far weaker than it looks (The Conversation) German Finance Minister Tells EU Leaders: Free Money Party's Over (ZeroHedge blog)

Italy's Renzi tries new reform plan as economy sinks (Reuters)

It's confirmed: Italy is back into recession (Marketwatch)

Italy's unemployment rate rises to 12.6% (Marketwatch)

Italy's CPI has first yearly fall since 1959 (Marketwatch)

The billion-dollar fall of the house of Espirito Santo [in Portugal] (Reuters)

Japan’s Inflation Unchanged, Highlighting BOJ’s Challenge (Bloomberg) Japan economy stalls as incomes, spending languish (The Associated Press) Japan's economic revival is in jeopardy (CNNMoney)

US consumers pare spending as income growth slows (Reuters)

Who's minding public pensions? (The Los Angeles Times)

Too Big To Fail Banks Have Paid $251 Billion in Fines For Sins Committed Since 2008 (Forbes)

Detroit secures $275 million in bankruptcy exit financing (Detroit Free Press)

What Labor’s Win at Market Basket Means for Your Job Security: The victory at a New England grocery chain might seem like a fluke. But economic trends show that workers may be finally getting some leverage. (Time) A Grocery List of PR Lessons from the Market Basket Saga: Don’t Do What They Did (Boston)

Tragedy-hit Malaysia Airlines to lose 6,000 jobs in bold revamp (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.

Thursday, August 28, 2014

Thursday roundup (08-28-14)

Get Ready For Two More Dismal Economic Data Reports Out Of Europe [on inflation and employment] (The Business Insider)

That sinking feeling (again): If Germany, France and Italy cannot find a way to refloat Europe’s economy, the euro may yet be doomed (The Economist)

Italy May Sell $7 Billion in Eni, Enel Stakes to Cut Debt (Bloomberg)

Italy’s Top Banks Seeking Up to $36 Billion From ECB (Bloomberg)

Spanish consumer prices drop again in August (Agence France Presse)

Russian Recession Risk Seen at Record High Amid Sanctions (Bloomberg) Western Sanctions And Rising Debts Are Already Strangling The Russian Economy (Forbes)

Federal government [in Canada is] on track to cut 35,000 public service jobs [of which nearly 26,000 have already been eliminated] (The Ottawa Citizen)

Deeper Argentine Default Pain Looms as Cash Concerns Grow (Bloomberg)

Survey: Americans' pessimism on economy has grown (The Associated Press) Most Americans Think The Recession Permanently Damaged The Economy: Survey (The Huffington Post)

This is why it feels like the recession never ended (The Washington Post blogs)

2008: Worse than the Great Depression? ["'The solvency of the whole banking system was in question. This was a crisis that went beyond anything that our academic Fed chair had ever dreamed of,' said David Jones, a former Fed economist"] (CNNMoney)

Washington Recaptured by Simon Johnson [not by the British this time, but by "very large banks"] (Project Syndicate)

So Did Anyone Lose Any Money At MF Global? (Dealbreaker)

Wall St. Prosecutors Bare Their Teeth, but Still Lack Bite (The New York Times blogs)

Warring Demoulas Billionaires Finally Settle Family Score With Market Basket Deal (Forbes) Arthur T. Demoulas Returns to Market Basket (Economic Signs of the Times 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.

Is it a recovery yet? (Weekly report, 08-28-14)

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 claims edged down by 1,000 to 298,000 in the seven days ended Aug. 23 and remain near an eight-year low, the Labor Department reported Thursday." (Marketwatch)

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.

Arthur T. Demoulas Returns to Market Basket

Market Basket back in Arthur T.'s hands: Shareholders approve $1.5B bid, ending nearly six-week stalemate -- [Daniel Korschun, a Drexel University business professor, said: "Never, to my knowledge, have employees, customers, and suppliers joined forces to challenge a board of directors in this way."] (The Fitchburg Sentinel & Enterprise of Fitchburg, Massachusetts)

Artie T. thanks supporters [WCVB TV via] (Youtube)



TRANSCRIPT OF ARTHUR T. DEMOULAS'S ADDRESS TO SUPPORTERS
OUTSIDE MARKET BASKET HEADQUARTERS IN TEWKSBURY, MASSACHUSETTS

How are you all doing today? Thank you. Thank you all so very, very much. You know, I look out here, and you're all so very, very special. And all I can say: It's great to be back together again.

You know, I'll tell you, you know, words cannot express how much I appreciate each and every one of you. And words cannot express how much I missed you. And words cannot express how much I love you. You know, you are simply the best. Seeing all of you here today looks like a little piece of heaven on earth.

You know, as I stand here before you, I am in awe of what you have all accomplished and the sterling example you have all set for so many people across the region and across the country. You know, as I stand here, there's very little that I could ever add to your brilliant words, your extraordinary display of loyalty, and the power of your enduring human spirit over the past six weeks. 

There's been so much said over the past several weeks by so many different people from so many walks of life, from professors at prestigious universities and institutions to business analysts from around the globe to CEO's of major corporations to journalists from publications across the nation. But the words and the most meaningful words, the most eloquent words, the words which resonated throughout this entire region and across the country were the words spoken by all of you, the associates of Market Basket, the customers of Market Basket, and the vendors of this Market Basket organization.

You and only you have taught the educators, you have taught the professors, the analysts, and the CEO's that the workplace here at Market Basket is so much more than just a job.

You've taught everybody that here at Market Basket is a place where respect and honor and dignity is a way of life.

Your words were supported by your actions from deep within your hearts, and it was your voices that blared through the televisions, the radio, and in newspaper print to trigger this insurgence, and in that act, you displayed to everyone your unwavering dedication and desire to protect the culture of your company.

You have demonstrated that in this organization here at Market Basket everyone is special. You have demonstrated that everyone here has a purpose. You have demonstrated that everyone has meaning and no one person is better or more important than another, and no one person holds a position of privilege, whether it's a full-timer or a part-timer, whether it's a sacker or a cashier or a grocery clerk or a truck driver or a warehouse selector, a store manager, a supervisor, a customer, a vendor, or a CEO -- we are all equal.

We are all equal, and by working together, and only together, do we succeed.

You proved, all of you, that your grassroots effort to save your company and harness thousands and thousands of people was not about a family conflict or a Greek tragedy, but more about fairness, justice, and a solid moral compass that unites the human soul.

I've always believed that we are born into this world at a certain time and at a certain place to be with certain people for a reason and a purpose. Everyone has a destiny, and because of you, I stand here with a renewed vigor and a sense of purpose, and may we always remember this past summer, first as a time where our collective values of loyalty, courage, and kindness for one another really prevailed, and in that process, we just happened to save our company.

I want you to please know as you held signs in the hot summer sun, as you stood waving flags in the pouring rain, as you sacrificed your paychecks, as you shared your lunch with your fellow protesters, as you gave generously to those who had less than you, the public watched in awe and admiration because you empowered others to seek change.

You all, each and every one of you and thousands and thousands more that aren't here today, you have demonstrated to the world that it is a person's moral obligation and social responsibility to protect a culture which provides an honorable and a dignified place in which to work. A culture originally established by my beloved father, T. A. Demoulas, without whom we would not have the foundation upon which this company was built, a foundation which all of you fought to preserve for the past six weeks. My father would be so very proud of each and every one of you and especially proud in the pride that you all possess. I love you all.

Let's take that pride, and let's move forward doing what we love to do: working together and serving our devoted customers. We'll get to work, and we'll have lots of fun. 

I look at you all and I can't thank you enough: On behalf of my mother, my wonderful wife Maureen and my children, my three sisters -- Frances, Glorianne, and Caren -- and my brother in laws -- Mike, Bobby, and Joe -- and my sisters' families, my nieces and my nephews, we extend to each and every one of you our profound gratitude and our heartfelt love.


We realize that thank you is not enough, and yet thank you is all that we can really say. We just hope that the depth and the sincerity of that statement will find its way to your hearts as you have touched ours. I love you all. I thank you very, very much. Stay well. Stay healthy. It's great to be together again. You're one of a kind. And let's have some fun. Thank you very much.