Thursday roundup (05-23-13)

European Leaders Saying No to Austerity (Bloomberg)

ECB can't solve euro zone crisis alone: Weidmann (Reuters)

Portugal Posts Wider Budget Deficit as Spending Increases (Bloomberg)

Veteran fears 'beginning of the end' for Japan as bond market buckles: Global markets face a witches’ brew of new risks as Japan’s monetary adventure wobbles, China slows further and the US Fed prepares to shut the spigot of dollar liquidity. (The Telegraph)

Bass Sees BOJ Bond Purchases Overwhelmed as Investors Dump Debt (Bloomberg)

Deflation threat should keep Fed engaged: There's "zero chance" the Federal Reserve will start tapering off its bond-buying in June, says Keith Springer of Springer Financial Advisors. The Fed's too worried about deflation to do that. [AUDIO] (Marketwatch)

How a Big-Bank Failure Could Unfold by Marc Jarsulic and Simon Johnson (The New York Times blogs)

GMO Labeling Bill Voted Down In Senate (The Huffington Post)

Download the True Food Shopper's Guide: How to Avoid Foods Made with Genetically Modified Organisms [GMOs] (The Center for Food Safety)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Is it a recovery yet? (Weekly report, 05-23-13)

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.)

"Jobless claims fell by 23,000 to 340,000 in the week ended May 18, Labor Department figures showed today in Washington." (Bloomberg)

Jobless Claims Fall As Manufacturing Growth Slows Again In May (The Capital Spectator)

Jobs, housing data show economy has some muscle (Reuters)

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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Wednesday roundup (05-22-13)

Europe’s Leaders Say No to Austerity, Don’t Say Yes to Stimulus (Bloomberg)

Cyprus central bank sees 'substantial' risks to economy (Reuters)

Germany's Bundesbank chief says France must cut deficit (Agence France Presse)

Millions of Italians Stuck in Poverty: Report (CNBC)

IMF says Britain 'a long way' from recovery (Agence France Presse) Austerity is a task for another day, IMF tells George Osborne: International Monetary Fund advises chancellor to defer cuts programme and instead stimulate faltering economy (The Guardian)

Kyle Bass: Japanese Bond Market Is Teetering on Epic Ruin (MoneyNews)

Bernanke Says Premature Tightening Would Endanger Recovery (Bloomberg) Fed Endorses Stimulus, but the Message Is Garbled (The New York Times)

IMF says Washington cutting budget deficits too quickly [May 20] (Reuters)

Ben vs. Bernie on Too Big to Fail (The Street)

Student loan defaults rising despite a way out (CBS Moneywatch)

Ford Australia to close Broadmeadows and Geelong plants, 1,200 jobs to go (The Australian Broadcasting Commission)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Tuesday roundup (05-21-13)

Europe faces lost decade, says [incoming Bank of England governor] Mark Carney: Mark Carney, the incoming Bank of England Governor, has warned that Europe could face a decade of stagnation unless it takes the kind of bold measures seen in Japan. (The Telegraph) Carney issues warning to Europe about economy (The Globe and Mail of Toronto)

Fed’s Bullard Says ECB Needs ‘Aggressive’ QE to Avoid Japan Fate (Bloomberg) Fed's Bullard recommends euro zone consider quantitative easing ["to counter slowing inflation and recession"] (Reuters) Monetary Policy Options in a Low Policy Rate Environment by James Bullard (The Federal Reserve Bank of St. Louis)

[Italy's Prime Minister] Letta tells EU to change or 'implode': Premier addresses parliament on eve of European debut (ANSA)

Will IMF repeat its anti-austerity call [to the UK]?: George Osborne has been doing his utmost to get the IMF mission to change its view during talks over the past fortnight (The Guardian blogs)

Mark Carney warns Europe against lost decade of austerity: Fall in UK consumer prices index gives incoming Bank of England governor room to manoeuvre (The Guardian) Why falling inflation matters: A drop in inflation eases the squeeze on consumer real incomes by reducing the gap between price increases and wage increases (The Guardian blogs)

Kyle Bass Commissioned A Poll That Confirmed To Him That Japan Is Going To Implode (The Business Insider)

[US] Banks still want bailouts [editorial] (The Philadelphia Inquirer)

Elizabeth Warren Asks New Treasury Secretary If He'll Be As Bad On Big Banks As The Old One (VIDEO) (The Huffington Post)

Medtronic cutting 2,000 jobs worldwide, 500 in Minnesota (The Star Tribune of Minneapolis MN)

NetApp to lay off 900, including some employees in RTP (The News Observer of Raleigh, NC)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Monday roundup (05-20-13)

France must reform or face punitive measures: EU's Oettinger (Reuters)

Italy's industrial output falls back to 1970s: Italy’s president Giorgio Napolitano has called for immediate measures to combat a “dramatic crisis” after the country’s industrial output fell back to levels reached in 1979. (The Telegraph)

Portugal's Banks Fear 'Cyprus Virus' [The Financial Times via] (CNBC)

[UK] Energy bills 'could overtake mortgages in five years’: Energy bills are rising so steeply that they could overtake mortgage repayments in parts of Britain in just five years’ time, the chief executive of supplier, First Utility, has claimed. (The Telegraph)

Japan panel warns of dangers if debt not addressed (Reuters)

Shrinking [US] deficit reduces pressure for budget deal (Reuters)

Fed up with Ben: Econ in depression (The New York Post)

Fed's Fisher: Dodd Frank Law 'Horribly Complex': Dallas Federal Reserve President Richard Fisher explains the importance of simplifying bank regulations. (CNBC)



Is EVERY Market Rigged? [Washingon's Blog via] (The Big Picture blog)

Suburban poverty soars (CNNMoney)

For Detroit in crisis, next six weeks determine bankruptcy fate (Reuters)

Shaw’s to Lay Off 700 People in New England (Valley News of White River Junction, Vermont)

Alcoa Cuts 500 Jobs In Canada (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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Sunday roundup (05-19-13)

BIS and IMF attacks on quantitative easing deeply misguided warn monetarists: Monetarists across the world have warned that the International Monetary Fund and the Bank for International Settlements are making an historic error by calling for a withdrawal of emergency stimulus before the global economy has fully recovered. (The Telegraph)

Bundesbank Chief Says France Must Take Deficit Cuts Seriously (Reuters)

Sir Mervyn King: don't demonise bankers: Outgoing Bank of England governor blames regulatory failure for banking crisis and not individuals (The Guardian) Sir Mervyn King: stop 'demonising' bankers: Sir Mervyn King, the outgoing head of the Bank of England, has called for an end of banker bashing saying it’s wrong to “demonise individuals” for the failure of the financial system. (The Telegraph)

MORGAN STANLEY: And Now It's Time To Worry About Deflation Again (The Business Insider)

Rogue banks remain too big to fail: Our view: 15% cash cushions would force them to break up or be conservative. (USAToday)

Angry JP Morgan shareholders seek to strip Jamie Dimon of chairmanship: US banking giant facing revolt by dissidents in wake of $6bn London Whale trading loss last year (The Guardian)

Everything Is Rigged: The Biggest Price-Fixing Scandal Ever: The Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There's no price the big banks can't fix by Matt Taibi [magazine article associated with Rolling Stone blog post linked here on April 26] (Rolling Stone)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Saturday roundup (05-18-13)

That's a 'Depression': Europe's Double-Dip Is Officially Longer Than Its Great Recession: The Old Continent has that 1930s feeling (The Atlantic)

The World's 5 Most Debt-Ridden Countries [= Japan, Greece, Italy, Portugal, and Ireland, as measured by Debt to GDP] (The Motley Fool)

Rome protest turns up heat on new PM Letta [as thousands protest] (Reuters) Rome protesters call on Letta government to boost jobs in Italy (EuroNews)



BOE’s King Says More Must Be Done to Spur Britain’s Recovery (Bloomberg)

Unofficial Problem Bank [in the US] list declines to 770 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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.