Saturday, August 29, 2015

Saturday roundup (8-29-15)

IMF's Lagarde says restructuring should suffice for Greek debt (Reuters)

Yanis Varoufakis Unplugged: On Tsipras, the Press and More [The Conversation via] (Newsweek)

Here’s Why The Bernie Sanders Iowa Surge Should Terrify The Koch Brothers (PoliticsUSA)

August 2015: Unofficial Problem Bank list declines to 282 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 28, 2015

Friday roundup (8-28-15)

Citigroup braces for world recession, calls for Corbynomics QE in China: Citigroup's Willem Buiter says only a blitz of helicopter money from the central bank can stop China's economy crumbling now by Ambrose Evans-Pritchard (The Telegraph) China Will Respond Too Late to Avoid Recession, Citigroup Says (Bloomberg)

How the IMF's Greek misadventure is changing the fund (Reuters)

Core inflation [in the United States] eases in July and moves further away from Fed’s target (Marketwatch) Fed’s Favorite Inflation Gauge Runs Below Target for 39 Straight Months: The PCE price index rose 0.1% last month, Commerce Department reports (The Wall Street Journal)

Consumer Sentiment in U.S. Declines to a Three-Month Low (Bloomberg)

Joseph Stiglitz explains why the Fed shouldn't raise interest rates (The Los Angeles Times) A dangerously misleading idea threatens to derail the American economy: The case for keeping interest rates as low as possible for as long as possible. (Vox)

Black Monday reveals the trouble with ETFs (USAToday)

Illinois lottery winners have to wait for payout due to budget impasse (The Chicago Tribune)

Brazil economy sinks into worse-than-expected recession (Reuters) Brazil falls deep into recession (CNNMoney)

Brazil budget deficit widens in July, jeopardizes fiscal goal (Reuters)

More Philly job cuts this fall [for a total of more than 800]: Mellon, Atkore: Update (The Philadelphia Inquirer)

Southern Baptist Convention cutting up to 800 jobs (Christianity Today)

[Germany's] Bilfinger to cut 750 jobs at power plant unit (Reuters)

[Finland's] VR planning to cut nearly 600 jobs: State rail company VR says it’s planning to eliminate 570 jobs in an effort to cut costs. The payroll cuts will mean leaner services on some routes, but the company also promised to permanently reduce ticket prices. (YLE)

     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 27, 2015

Thursday roundup (8-27-15)

Reflation threat to bonds as money supply catches fire in Europe: Central banks are taking out loose-money insurance against a crisis in China, but they risk being caught badly off guard by surging money growth as stimulus bites by Ambrose Evans-Pritchard (The Telegraph) The Coming Phase Transition & the Dow by Martin Armstrong (Armstrong Economics)

ECB faces inflation headache even as lending bounces (Reuters)

Ukraine dodges default with $3.6 billion debt deal (CNNMoney) Ukraine and Top Creditors Agree to Restructure $18 Billion in Foreign Debt (The New York Times) Ukraine crisis: Creditors to 'write off' 20% of debt (The BBC)

Japan inflation stalls and spending slides, keeps BOJ under pressure (Reuters)

Mauldin's Outside The Box on the Corruption of American Politics (Cliff Küle’s Notes blog)

Dudley Puts The Kibosh On September (Tim Duy's Fed Watch blog)

Brazil central govt posts $2 bln primary budget deficit in July (Reuters)

Latin America is on the brink of a major debt crisis (The Business Insider)

Deflationary Collapse Ahead? (ZeroHedge 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, 08-27-15)

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.)

"New applications for U.S. unemployment benefits fell by 6,000 to 271,000 in the seven days ended August 22, the first decline after four straight weekly gains." (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.

Wednesday, August 26, 2015

Wednesday roundup (8-26-15)

Oil Industry Needs to Find Half a Trillion Dollars to Survive (Bloomberg)

CBO: US could reach $18.1 trillion debt limit in mid-November (The Hill)

Bank Regulators Considering Concessions on Key Capital Rule (Bloomberg)

Panasonic to stop making batteries in Beijing, cut 1,300 jobs - 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.

Tuesday, August 25, 2015

Tuesday roundup (8-25-15)

Bank of England 'may put off interest rate hike' after market turmoil in China (The Evening Standard)

Russia Faces Reality With Prediction of Deeper Economic Slump (Bloomberg)

China Again Cuts Interest Rates as Concerns Mount Over Economy (The New York Times) China cuts rates to stem crisis, but doubts grow on foreign reserve buffer: 'There are reasons to question the robustness of China’s reserves,' said Citigroup. Contrary to general belief, China has one of the lowest reserve ratios among emerging markets by Ambrose Evans-Pritchard (The Telegraph)

China's economic woes may spread beyond its borders (The Hill blogs)

Chinese alarm over? No, this is merely a pause in an ongoing debt crisis: Six years after the global financial crisis, the world economy still looks as unstable, unbalanced, uncoordinated and ultimately unsustainable as ever (The Telegraph)

Great Recession Job Losses Severe, Enduring [in the United States]: Of those who lost full-time jobs between 2007 and 2009, only about 50 percent were employed in January 2010 and only about 75 percent of those were re-employed in full-time jobs. (The National Bureau of Economic Research)

How Google Could Rig the 2016 Election: Google has the ability to drive millions of votes to a candidate with no one the wiser. (Politico)

How Elizabeth Warren Is Pulling The Strings In 2016 (ThinkProgress)

California officials eyeing stock market plunge, hope it won't last (The Los Angeles Times)

Dutch Nutritional Supplement Maker DSM to Cut 900-1,100 Jobs (The Associated Press)

     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 24, 2015

Monday roundup (8-24-15)

Global Trade In Freefall: Container Freight Rates From Asia To Europe Crash 60% In Three Weeks (ZeroHedge blog)

How Greece outflanked Germany and won generous debt relief: Tsipras’s prize in negotiations was debt rescheduling like West Germany’s in 1953 (Marketwatch)

Anti-bailout leftist gets Greek coalition mandate (Reuters) Pro-Grexit group Popular Unity to take mandate to create Greek coalition as New Democracy misses deadline (CityAM)

US crude closes under $40 a barrel for first time in 6 ½ years on fears of new global slump (The Associated Press)

U.S. inflation probably lower than reported, Fed study says (Reuters)

Why the Bear of 2015 Is Different from the Bear of 2008 by Charles Hugh Smith (of two minds blog)

A&P supermarkets Thanksgiving Day layoff list grows to 8,500 jobs at 93 stores (NJ)

Daimler to cut another 1,500 jobs at Brazil truck plant (Reuters)

Origin to cut about 800 jobs (SkyNews)

Norwegian IT firm Evry to slash up to 550 jobs (ComputerWeekly)

BlueScope to cut at least 500 steel jobs (NewsAu)

     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.