Friday, October 31, 2014

Friday roundup (10-31-14)

Eurozone Inflation Ticked Up in October, but Is Still Far Below Target (The New York Times) Eurozone inflation edges up – but not enough to ease concerns about deflation: European Central Bank remains under pressure as economists expect renewed downward pressure on inflation (The Guardian) Deflation Hit More Eurozone Products in October (The Wall Street Journal blogs) Why Deflation Is Such A Big Worry For Europe: Some of the weakest countries, such as Spain and Italy, are experiencing a broad drop in incomes and asset values. Deflation is a painful process that can be hard to reverse once it starts. (National Public Radio)



German inflation slowdown shows deflation risk remains (Reuters)

Japan’s Central Bank Unexpectedly Moves to Stimulate Economy (The New York Times) Japan risks Asian currency war with fresh QE blitz: The Bank of Japan is mopping up the country's vast debt and driving down the yen in a radical experiment in modern global finance by Ambrose Evans-Pritchard (The Telegraph)

Inflation? Deflation Is New Risk [in the US] (The New York Times)

Can Walmart's holiday plans get shoppers back? (CBSNews) Wal-Mart to Cut Prices on 20K Items to Spur Holiday Sales: Wal-Mart, working to reverse six straight quarters of stagnant U.S. sales, will cut prices on more than 20,000 items tomorrow to get a jump on competitors before the holiday season. ilt Groupe Founder and Chairman Kevin Ryan and Bloomberg’s Julie Hyman speak on “In The Loop.” (Bloomberg)



Sony Says Half-Year Loss Nearly $1 Billion; Will Cut 1,000 Jobs (Agence France Presse)

World Bank to cut 500 jobs in some units as part of 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, October 30, 2014

Thursday roundup (10-30-14)

Shadow Banking* Grows to $75 Trillion Industry [Globally], FSB Says [*"which includes hedge funds, real estate investment trusts and off-balance sheet investment vehicles"] (Bloomberg)

Euro zone haunts Spanish economy as growth slows, prices fall (Reuters)

South of Italy in 'catastrophic decline' after recession: Southern Italy is undergoing catastrophic demographic and industrial decline after six consecutive years of recession, report warns (The Telegraph)

US and China tighten in unison, and damn the torpedoes: The world has changed abruptly for investors as the US Federal Reserve and the People's Bank of China both brush aside deflation warnings and press ahead with monetary tightening by Ambrose Evans-Pritchard (The Telegraph)

The U.S. recovery is frustrating — but it’s the envy of the advanced world (The Washington Post blogs) The economy just grew 3.5 percent, but the recovery is still incredibly mediocre (The Washington Post blogs)

U.S. prosecutors reopen probes against several big banks: NYT (Reuters)

Some MF Global creditors to get first payout, 3 years after bankruptcy (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.

Is it a recovery yet? (Weekly report, 10-30-14)

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 climbed by 3,000 to 287,000 in the week ended Oct. 25, the Labor Department said 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.

Wednesday, October 29, 2014

Wednesday roundup (10-29-14)

Bank of England chief economist wants global coordination on financial risks (Reuters) Global financial system ‘incendiary’ risk to stability, says Bank regulator: International flow of funds now a ‘genuine system’ that requires new and stronger regulatory tools, says Andy Haldane (The Guardian)

As deflation deadline nears, BOJ faces prospect of failure (Reuters)

Fed declares economy strong enough for bond-buying stimulus to end (The Los Angeles Times) Fed ends bond buying, shows confidence in U.S. recovery (Reuters)

Homeownership drops to two-decade low (Marketwatch)

     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, October 28, 2014

Tuesday roundup (10-28-14)

The case for a global recession in 2015 (Fortune)

Child poverty up in more than half of developed world since 2008: Unicef report finds number of children entering poverty during global recession is 2.6 million greater than number lifted out of it (The Guardian) UK child poverty soaring due to Government’s austerity measures, Unicef says (The Independent)

Italy cuts 2015 deficit goal to win EU approval for budget (Reuters)

Swedish central bank cuts interest rate to zero to fight deflation risk (Reuters) Riksbank cuts rates to zero and mulls currency war to fight deflation: Sweden's central bank is having to pick its  poison, choosing between deflation or an asset bubble by Ambrose Evans-Pritchard (The Telegraph)

Bank of England set to impose higher leverage ratio on banks - sources (Reuters)

Israeli deflation not a big concern, aids consumers - central bank official (Reuters)

Erskine Bowles: Urgency of [US] federal deficit remains: The recent decline in the budget deficit can’t distract us from real structural and tax reforms. (USAToday)

Lloyds Bank to Cut 9,000 Jobs in Digital Push (The New York Times blogs)

Dutch arm of Air France-KLM to shed 7,500 jobs: report (Reuters)

Amgen to cut up to 1,100 more jobs (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.

Monday, October 27, 2014

Monday roundup (10-27-14)

ECB stress tests vastly understate risk of deflation and leverage: Ignoring the deflation danger for the banking systems of southern Europe has reduced the latest stress test to another 'farce', says EU economist Philippe Legrain by Ambrose Evans-Pritchard (The Telegraph) The Chart That Crushes All Credibility Of The ECB's Latest Stress Test (ZeroHedge blog)

Under full capital rules, 36 EU banks would have failed test (Reuters)

Deflation dangers in euro zone: Policy conservatism thrust upon by bigger economies needs to be abandoned. Else, the bloc could disintegrate (LiveMint)

[In Fighting Deflation,] Draghi May Help Europe’s Rich Get Richer (Bloomberg)

German economy could lead Europe back into recession (The Australian Broadcasting Corporation)

France and Italy offer to trim deficit further to win EU clemency (Reuters)

Deflation looms as Fed policy sputters (The San Diego Union-Tribune) Specter of no-inflation world looms over Fed's return to normal (Reuters)

We Don't Have One Problem--We Have Three Interlocking Sets of Problems by Charles Hugh Smith (Of Two Minds blog)

The Decline of California Agriculture Has Begun: Photos from the changed Central Valley. (Slate)

     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, October 26, 2014

Sunday roundup (10-26-14)

ECB fails 25 banks in health check but problems largely solved (Reuters) 13 European banks fail 'stress test' review, must raise $12.5 billion: The European Central Bank reviewed the financial institutions and found 25 banks, one in five European institutions, did not have enough resources to withstand an economic downturn and needed stronger capital buffers. 12 of the banks have already made up the shortfall. (The Associated Press) Four in five eurozone banks pass ECB health test (Agence France Presse)

There Is One Huge Thing Missing [= threat of deflation] From The ECB's Stress Tests (The Business Insider) ECB stress test scenario did not consider deflation: Constancio (Reuters)

Italian Banks Are the Weakest Performers in E.C.B. Review (The New York Times blogs)

[Italian bank] Monte Paschi has biggest capital gap in ECB tests, may seek merger (Reuters) Monte Dei Paschi looks at strategic options (Marketwatch)

Fed set to finally get out of the market (CNNMoney) Federal Reserve to take away the punch bowl (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.