Wednesday, January 28, 2015

Wednesday roundup (01-28-15)

Bank of England governor attacks eurozone austerity: Mark Carney says eurozone is caught in a debt trap and should ease hardline budget cuts just days after the Syriza election directly challenged policy (The Guardian) Bank of England Governor Mark Carney urges eurozone to spend its way out of stagnation (The Independent) Bank of England's Carney urges Europe to take plunge on fiscal union (Reuters) 'Timidity' is reponsible for eurozone stagnation, says Mark Carney: An unfinished euro area explains why the currency bloc has performed so poorly since the financial crisis, Mark Carney, the Governor of the Bank of England, says (The Telegraph)

Greece’s New Leaders Act Swiftly to Reverse Austerity: Measures to Halt Privatizations, Rehire Public Workers Trigger Greek Market Selloff (The Wall Street Journal) Greece insists it can [no] longer tolerate 'choking austerity': Greece's new prime minister says the country can no longer tolerate "choking austerity" and that its huge debts need to be renegotiated (The Telegraph)

Germans in shock as new Greek leader starts with a bang (Reuters)

Greece’s do-or-die moment: If Greece’s newly elected government sticks to its sloganeering stance, it will probably exit the Euro. And that could snowball into an economic disaster. (Fortune) Greece at the Crossroads: the Oligarchs Blew It by Charles Hugh Smith (of two minds blog)

[In the United States,] Gains From Economic Recovery Still Limited to Top One Percent (The New York Times)

[Meanwhile] Almost twice as many kids helped by food stamps than before recession (Newsday) Census Finds One in Five American Children Depends on Food Stamps to Eat (Slate blogs)

S&P cuts Atlantic City rating into junk territory (Marketwatch)

Lada Car Maker Avtovaz Plans to Cut 1,100 Jobs in Russia: Avtovaz, Controlled by Renault and Nissan, Has Been Hit by Russia’s Economic Slowdown (The Wall Street Journal)

Citrix to cut about 900 jobs (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, January 27, 2015

Tuesday roundup (01-27-15)

Super Mario's Desperate QE Gamble to Save Europe: Will new ECB bond purchases mean "Game Over" for Europe's economy? What will the impact be on the United States? by Christopher Whalen (The National Interest)

Germany's top institutes push 'Grexit' plans as showdown escalates: Germany’s Wolfgang Schäuble is 'relaxed' about Greek exit from the euro by Ambrose Evans-Pritchard (The Telegraph) Germany will relent on Greek debt – and Europe will suffer: Alexis Tsipras has inflicted another defeat on Berlin. Merkel is no longer Empress Angela, and the real problems await in France and Italy (The Guardian)

Bailout critic appointed Greek finance minister, as warnings build over the country's economy (The Associated Press) Greek PM Tsipras names anti-austerity cabinet, port sale halted (Reuters) New cabinet for Greece but same debt: Economics professor Yanis Varoufakis has been confirmed as Greece's next finance minister. As Sonia Legg reports he's already promised to defy advice to ''put up or shut up'' saying he intends to find solutions that favour all Europeans rather than just Greeks. (Reuters)



Low Oil Prices Could Send [the United States] Economy Into Recession (Forbes)

Fed risks deflation if it rushes to hike rates - Gundlach (Reuters) Five things to know about deflation [Tribune News Service via] (The Olympian)

Home Price Growth Slows For 11th Straight Month In November (Forbes)

Wall Street is a threat to the American middle class: The middle class is a hot political property for Republicans and Democrats alike, but the middle class can't be saved unless Wall Street is tamed. by Robert Reich (The Christian Science Monitor)

Are The Big Four American Banks Still 'Too Big To Fail'? (Benzinga)


Procter & Gamble Co. (PG) to cut 2,300 more jobs by June: CFO: Cuts will be aggressive but balanced (WCPO)

Sony to cut 1,000 jobs in smartphone business: Nikkei (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, January 26, 2015

Monday roundup (01-26-15)

Greece’s new anti-austerity government set on collision course with Brussels: Syriza leader Alexis Tsipras heads coalition of left and right parties with mandate to take on country’s paymasters (The Guardian) Greece's new prime minister puts his country on a collision course with Germany over their EU debts... and his first official act is to lay a wreath for Greek soldiers killed by the Nazis (The Daily Mail) Greek coalition braces for debt showdown as Germany rattles sabre: Markets have yet to grasp that the rift between EU creditors and Greece's firebrand premier Alexis Tspiras is 'so large as to be unbridgeable', warns Nomura by Ambrose Evans-Pritchard (The Telegraph) Greece’s Agonized Cry to Europe [Editorial] (The New York Times) Syriza victory: ‘Worse than expected’, ‘Spells trouble for Greece’ — analysts (Marketwatch)

No debt forgiveness for Greece, say eurozone finance bosses: The eurozone has ruled out debt forgiveness for Greece and warned Alexis Tsipras that his anti-austerity coalition government must honour all past agreements with international creditors. (The Telegraph)

Spain Deflation Risks Mount as Producer Prices Drop Annual 3.7% (Bloomberg)

S&P downgrades Russia's sovereign credit rating to 'junk' (Reuters)

IBM To Cut More Than 110,000 Jobs, Report Says: An unconfirmed report says IBM is embarking on a major reorganisation that will see it cut 26% of its workforce. (SkyNews) IBM dismisses Forbes report of massive layoffs (Reuters) Anatomy Of A Layoff: How IBM Is Likely To Spin This Week's Force Reduction (Forbes)

SMA Solar to cut 1,600 jobs as European demand slides (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.

Sunday, January 25, 2015

Sunday roundup (01-25-15)

Syriza’s historic win puts Greece on collision course with Europe: Greek voters reject EU austerity for radical alternative of far-left party, which falls just short of an overall majority (The Guardian) Greeks Vote In Austerity Foes, a Major Shift (The New York 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.

Saturday, January 24, 2015

Saturday roundup (01-24-15)

2015: The global economy's 'sink or swim' moment (CNNMoney)

The 7-year slump: Why the global economy can’t seem to get started (The Globe and Mail of Toronto)

Mark Carney warns of liquidity storm as global currency system turns upside down: Governor tells audience at Davos that monetary tightening from the Federal Reserve will "test the resilience of the financial system" by Ambrose Evans-Pritchard (The Telegraph)

As Greece prepares to vote, a new age of Eurozone tension begins: Post-election bargaining to revive the tradition of high-stakes games of chicken between debtors and creditors (Fortune) Is Greece about to call time on five punishing years of austerity?: Historic elections could see disillusioned voters put leftwing party Syriza in power, sending a defiant message across Europe (The Guardian) Greece's election: The Syriza factor (The Economist)



Upcoming Greek Elections Could Be Trouble For European Debt Holders (Forbes)

Nothing Is Going to Save the Housing Market [in the United States] (BloombergView)

Unofficial Problem Bank list declines to 390 Institutions (Calculated Risk blog)

Highland Community Bank, IL, Second Bank Failure of 2015 [as posted here yesterday] (Problem Bank List)

     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, January 23, 2015

Friday roundup (01-23-15)

GLOBAL ECONOMY-Evaporating inflation and growth put pressure on central banks (Reuters)

Seven Central Banks Take Anti-Deflationary Actions in Past Week (Wall Street on Parade)

An Economics Professor Explains The Danger Of Deflation In 24 Simple Slides (The Business Insider)

At the Fulcrum of Preventing Another Financial Crisis (The New York Times blogs)

ECB's €1 Trillion QE Will Not Solve Eurozone's Growth And Inflation Problems (Forbes) SocGen Explains That Since The ECB's QE Will Fail, It Will Need To Be Increased To €3 Trillion, Include Stocks (ZeroHedge blog) [Nevertheless] Bank of England Governor Backs E.C.B. Strategy (The New York Times blogs)

Davos: France ‘must speed up reforms’ in wake of QE: French president commits to faster reforms alongside ECB launch of quantitative easing (The Irish Times)

Greek anti-austerity party holds lead before Sunday elections (Reuters)

Greece to need another bailout extension - euro zone official (Reuters) Greek Public Debt at 176% of GDP in Q3 2014 (Greek Reporter) Top Economists Call For Greece To Get A Debt Write-Off Ahead Of Crucial Election (The Business Insider) Eurogroup chief hints at ‘wriggle room ’ over Greek debt: Jeroen Dijsselbloem says changes possible with the Athens adjustment programme (The Irish Times)

George Osborne tells Europeans to pull their socks up if they want to keep Britain: Chancellor George Osborne says eurozone 'must be a job-creating union, and it must respect the needs of non-euro members' by Ambrose Evans-Pritchard (The Telegraph) EU ‘PUSHING UP UK DEBT’ THANKS TO EXTORTIONATE MEMBERSHIP FEES (Breitbart)

Kremlin hard-liner: Russians would 'rather starve' than surrender Putin to Western aggressors: Russia's deputy prime minister, speaking at the World Economic Forum, says that his country's dispute with the US and Europe goes far beyond issues over Ukraine by Ambrose Evans-Pritchard (The Telegraph)

China January factory growth stalls, deflation pressures build, bad debt rises (Reuters)

Brazil’s worst drought in history prompts protests and blackouts: Lights go out, internet is cut for days, and agriculture is suffering as crisis spreads from São Paulo to Rio de Janeiro and beyond (The Guardian)

Eyes on Fed after ECB, other bank stimulus moves (Reuters)

Regulators close small bank in Chicago; second US bank failure of 2015 (The Associated Press) Highland Community Bank of Chicago IL had a troubled assets ratio of 136.4%. (BankTracker)

John Deere laying off 910 workers in Iowa, Illinois (KCCI)

     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, January 22, 2015

Thursday roundup (01-22-15)

Quote of the Day:

"It is urgent for Europe to bring Obama and the people making the decisions behind him back to reality. If not, this will spiral first into a financial collapse, which will slam into all of Europe, and then who knows where it goes after that? Everywhere, far-right nationalist forces are building. Look at the last U.S. Congressional elections, and think what is coming. Will America ever have had a more nationalist Congress?  Le Pen would be right at home in this crowd. The course we are on now is folly.  Can’t they see that?" -- Unnamed head of one of the largest companies in Germany (Salon)

If oil drops below $30 a barrel, brace for a global recession (Marketwatch)

Larry Summers warns of epochal deflationary crisis if Fed tightens too soon: Former US treasury secretary also says eurozone QE has come too late to lift the region off the reefs on its own. by Ambrose Evans-Pritchard (The Telegraph)

QE for the eurozone is a gigantic confidence trick. It should fool no one: Quantitative easing will simply bury money in commercial bank vaults, when it is cash in circulation that’s desperately needed (The Guardian) ECB launches 1 trillion euro rescue plan to revive euro economy (Reuters) Eurozone Nations Face Stronger Pressures to Lift Economies (The New York Times)

Draghi: "There must be a statute of limitations for those who say there will be inflation" (Calculated Risk blog)

Mario Draghi's QE blitz may save southern Europe, but at the risk of losing Germany: The ECB has put German political consent for the euro project at risk by Ambrose Evans-Pritchard (The Telegraph)

[In Greece:] ‘The bailout is over. Blackmail is over. Subservience is over’: Greece will make history, Syriza leader Alexis Tsipras tells final rally ahead of general election (The Irish Times) Greek election: Rena Dourou of Syriza poised to sweep away austerity: “Is it really right for thousands of people to commit suicide because of austerity policies?" asks Syriza's most senior politician ahead of Sunday's general election (The Telegraph)

QE for everyone... except Greece: CNBC's Michelle Caruso-Cabrera discusses the European central bank's QE program and takes a close look at Greek debt. (CNBC)



Irish crash could have collapsed euro, bailout chief tells inquiry (The Belfast Telegraph)

Bank of England says no urgency in returning interest rates to normal levels: Decline in oil prices means there should be no hurry to raise borrowing costs, says monetary policy committee spokesman (The Guardian)

Russian business is braced for ‘much worse’ (CNBC)

As central banks surprise, Fed may have to throw in the towel (Marketwatch)

‘Too Big to Fail’ on Financial Regulators’ Agenda Again [in the United States] (The New York Times blogs)

Kansas City Fed: Regional Manufacturing "Activity Expanded at a Slower Pace" in January, Weaker Energy Sector (Calculated Risk blog)

Raise the Millionaires tax: Return to tried and true policies that encouraged and grew our once-robust middle class. (USAToday)

Air France tells staff of plan to cut 800 jobs-sources (Reuters)

Mining company Arrium to cut 600 jobs in SA amid falling iron ore price (The Australian Broadcasting Corporation)

DreamWorks Animation to cut 500 jobs (The Los Angeles Times)

Why These 5 Companies Are Laying Off Thousands of Workers: The economy is on the mend. Unemployment rates are down. So what's up with all these companies slashing jobs by the thousands? (Time)

Target's package for ex-CEO matches package for all [of the company's] 17,600 Canadian workers: Value of Gregg Steinhafel's 'walk-away' package estimated at $61M (The Canadian Broadcasting Corporation)

     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.