Saturday, November 22, 2014

Saturday roundup (11-22-14)

Austerity has clearly failed [in the UK]. So why don’t they ditch it?: Falling incomes are fuelling the deficit and costing votes. But Cameron is looking after other interests (The Guardian)

Japanese QE tsunami risks global meltdown: The scale of the money-printing programme being undertaken in Tokyo threatens to start a wave of panic that forces the yen down, says Liam Halligan (The Telegraph)

There’s a Giant Contradiction at the Heart of the U.S. Economy (The New York Times)

Why wage growth disparity tells the story of America's half-formed economic recovery (The Washington Post)

America's part-time economy (CNNMoney)

Unofficial Problem Bank list declines to 411 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, November 21, 2014

Friday roundup (11-21-14)

Draghi throws ECB door open to money printing as global prospects dim (Reuters)

Troika urges Ireland to intensify further deficit reductions: Budget 2015 ‘makes less progress than desirable’ according to European officials (The Irish Times)

[UK] Chancellor haunted by deficit and £1.45 trillion debt pile: Government borrowing falls in October, but tax receipts remain weak, reducing chance of big giveaways in the Autumn Statement (The Telegraph)

In Change Of Strategy, China Cuts Interest Rate (The New York Times) Chinese Central Bank Falls Back on Trusty Rates Lever as New Tool Kit Not Enough (Bloomberg) China blinks as economic downturn deepens: "China is not safe until they put the credit genie back in the bottle but that is going to be very difficult to do,” warns UBS by Ambrose Evans-Pritchard (The Telegraph)

Commodities could lead to [US] banks needing another bailout: experts (Marketwatch) Report shows need to rein in Wall Street by Sen. Carl Levin (D) of Michigan (The US Senate)

N.Y. Fed President Dudley: I’m More of a Fire Warden, Not a Cop on the Beat (The Wall Street Journal blogs) Senate Democrats blast New York Fed over bank regulation (Reuters)

Why Elizabeth Warren would be a very dangerous candidate in 2016 (The Washington Post blogs)

KentuckyOne's parent to cut 1,500 across U.S. (The Louisville Courier-Journal)

     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, November 20, 2014

Thursday roundup (11-20-14)

The World Economy Is Slowing (The Business Insider) Creaking euro zone, China sound warnings for global growth (Reuters)

PMI signals "weakest Eurozone growth" for more than a year (CityAM) Growth at Risk as Factories, Services Weaken (Bloomberg) Eurozone recovery loses further steam in November [and "faces the real prospect of sliding back into recession"] (The Associated Press)

Germany Just Dragged Europe's Growth To A 16-Month Low (The Business Insider)

EU still considering fining France over budget rules (Reuters)

Weary Italy vents its rage in spate of strikes and protest (Reuters) Two major Italy unions call strike over government economic policies (Reuters)

Euro-Zone Tooth Fairy Economics, Spain Needs to leave the Euro (The Market Oracle)

Ukraine's economy: It is really that bad (The Economist blogs)

Russia’s lackluster economy means Putin simply can’t afford a new Cold War (Time)

     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, 11-20-14)

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 fell by 2,000 to a seasonally adjusted 291,000 in the week ended Nov. 15, the Labor Department said Thursday." (Marketwatch)

Fewer Than 300,000 in U.S. File Jobless Claims for 10th Week (Bloomberg)

Applications for US jobless aid slip; fewest Americans receiving benefits in 14 years (The Associated Press)

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, November 19, 2014

Wednesday roundup (11-19-14)

Bank of Spain calls for increased deficit cutting efforts (Reuters)

Jail threat is biggest deterrent for bad bankers, says Bank of England official: Minouche Shafik tells MPs that criminal sanctions are 'top of the list' in making bankers think twice as Icelandic bank boss Sigurjon Arnason is jailed (The Telegraph)

Americans, with record consumer debt of $3.2 trillion, are taking out more credit card and auto loans: The 28-29 October meeting of the Federal Reserve board of governors gave the economy a clean bill of healthy, but noted market concern about Ebola (The Guardian)

FOMC Minutes: "a few expressed concern that inflation might persist below the Committee's objective for quite some time" (Calculated Risk blog)

Peugeot plans to cut 3,450 French jobs in 2015: sources (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.

Tuesday, November 18, 2014

Tuesday roundup (11-18-14)

ECB entering 'very dangerous territory' warns S&P: “The risk of a triple-dip recession have increased. The ECB has one last arrow and that is quantitative easing of €1 trillion," said the credit rating agency by Ambrose Evans-Pritchard (The Telegraph)

France's flailing economy endangering the eurozone: The French economy is stagnating, with growth only in unemployment and the national debt. It will likely only hit the EU budget deficit target in 2017. Will the debt spiral continue? (Deutsche Welle)

Dutch Admit Prepping for Eurozone Breakup in 2012 (The Associated Press)

Greece at odds with EU/IMF lenders in 'tough' bailout review (Reuters) Greek Bailout Review Stalls as Troika Demands Final Steps (Bloomberg)

Tuition fees: Three quarters of students [in the UK] won’t be able to pay off their debt: A funding 'black hole' is forcing the Government to indirectly subsidise higher education writing off billions of pounds in student debt (The Independent)

Russia Sees Recession Next Year If Oil Price Falls to $60 (Bloomberg)

Japan Has Been in a Depression Since 1990: Rickards (Bloomberg)



About two-thirds of Americans are limiting spending, survey finds (The Chicago Tribune)

Too-Big-To-Manage Emerges As New Concern In the Financial Crisis (The New York Sun)

Too big to jail: why the government is quick to fine but slow to prosecute big corporations (Vox)

     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, November 17, 2014

Monday roundup (11-17-14)

Japan in recession: 'Red warning lights' for global economy (The Associated Press) Better Economic Policy Won't Save Japan (BloombergView)

5 reasons to worry about the world economy (CNNMoney)

As Japan Falls Into Recession, Europe Considers Ways to Avoid the Same Fate (The New York Times)

Euro zone deflation is threat to euro, ECB must act - ING IM (Reuters)

ECB open to more easing if needed, says Draghi (Marketwatch) ECB's Draghi: Buying sovereign bonds is an option (CNBC)

France challenges Germany over [its opposition to] eurozone stimulus (The Independent)

[From an Irish perspective:] Why Europe needs to reverse the austerity Germany has championed: ‘Not only was Ireland bullied by the ECB into entering a programme, but a large chunk of the received funds was transferred straight to the financial sector and foreign creditors (including various German banks)’ (The Irish Times)

Ukraine finances in jeopardy: IMF (CNBC)

Banking culture needs fundamental overhaul not fines, Mark Carney says: Bank of England governor’s proposals to curb excessive risk-taking include putting non-bonuses or fixed pay on the line (The Guardian) Banker pay must stop encouraging misconduct: Carney (CNBC) Crooked bankers could be forced to repay their salaries under fresh Bank of England crackdown (The Daily Mail)

The U.S. Money Supply Decelerates in October, the Risk of an Economic Bust Just Went Up (Forbes)

Industrial Output in U.S. Unexpectedly Fell in October (Bloomberg)

FHA is back in the black — but not out of the woods (The Washington Post)

Arctic Blast Brings Freezing Temperatures and More Snow to U.S. (NBC Nightly News with Brian Williams)


ABC [= The Australian Broadcasting Corporation] will be cut by $50m a year, costing 500 jobs by Christmas, as Turnbull defends Abbott on Q&A (The Sydney Morning Herald)

     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.