Friday, October 24, 2014

Friday roundup (10-24-14)

"Deflationary pressure bearing down" on global markets: Alpert: "We've leveled the wings of the plane, is it really flying or are we actually going to fall into the same disinflationary or deflationary trap as Europe?" (Yahoo!'s Yfinance Biz Economics)



The world’s biggest economic problem [is the Eurozone]: Deflation in the euro zone is all too close and extremely dangerous (The Economist)

Euro zone risks "relapse into recession" without structural reforms - Draghi (Reuters)

Back to reality: The debt of some euro-zone economies looks unsustainable (The Economist)

The Conflict Between Germany and the E.C.B. That Threatens Europe (The New York Times) Stagnating euro zone seeks to persuade Germany to shift (Reuters) Mario Draghi's German problem (Reuters)

[In the United States,] Regulators close National Republic Bank of Chicago (The Associated Press) The National Republic Bank of Chicago of Chicago IL had a troubled assets ratio of 327%. (BankTracker)

     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 23, 2014

Thursday roundup (10-23-14)

Is A Global Economic Storm Brewing? (Forbes) The pendulum swings to the pit: Politicians and central bankers are not providing the world with the inflation it needs; some economies face damaging deflation instead (The Economist)

German economy minister stands up to US on stimulus: On his first visit to the United States, Sigmar Gabriel has rejected a suggestion that Germany shoulder the weight of a European growth spurt. Soon, the vice chancellor will also have talks on an EU-US trade agreement. (Deutsche Welle)

France and Italy Tell Germany: Take Your Austerity and Stuff It (The American Prospect)

EU seeks clarification on Italy's breach of debt-cutting goals (Reuters)

Italy’s in terminal decline, and no one has the guts to stop it: Everything that’s wrong with France is worse here (The Spectator)

Interest rates could stay low permanently, says Bank of England deputy governor: Global interest rates declined "before as well as since the financial crisis", Ben Broadbent, deputy governor of the Bank of England says. (The Telegraph)

Mapping China's Bursting Real Estate Bubble (ZeroHedge blog)

How [in the United States] Quantitative Easing Contributed to the Nation’s Inequality Problem (The New York Times blogs)

     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, 10-23-14)

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.)

"The number of people who applied for U.S. unemployment benefits rose by 17,000 last week to 283,000, but initial claims remained near historically low levels that reflect the small number of layoffs taking place in the economy." (Marketwatch)

Jobless Claims in U.S. at 14-Year Low Over Past Month (Bloomberg)

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 22, 2014

Wednesday roundup (10-22-14)

Eurozone Economy Still 'In Danger Zone,' Mersch Says (Dow Jones Newswires)

EU to warn France and Italy on budget plans [The Financial Times via] (CNBC)

Eight charts showing where it all went wrong for France: From chronic unemployment, to the mess in its public finances, here are the numbers illustrating how France became the "sick man" of Europe (The Telegraph)

Bank of England committee sees little scope to raise rates as eurozone crisis returns: Minutes of the Bank's committee of rate setters revealed concerns about lower global demand, particularly from the struggling eurozone. (The Telegraph)

Lloyds To Cut 9,000 [UK] Jobs In Three-Year Plan: Lloyds will announce next week that it is to cut around 9,000 jobs as consumers turn to digital banking, Sky News learns. (SkyNews) Lloyds Said to Cut 9,000 Jobs Amid Online Banking Shift (Bloomberg)

U.S. Consumer Prices Barely Rise as Inflation Remains Muted (The New York Times) Inflation Short of Goal Means Fed Can Keep Rates Low: Economy (Bloomberg)

Water Crisis Seen Worsening as Sao Paulo Nears ‘Collapse’ (Bloomberg)

     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 21, 2014

Tuesday roundup (10-21-14)

Eurozone’s Economic Woes Deepen (The Big Picture blog)

EU budget 2014: European commission set to warn five countries [= Italy, France, Austria, Slovenia, and Malta] that their contributions breach new fiscal rules (CityAM) EU budget timetable points to Italy budget being rejected (Reuters)

Eurozone Risk to U.S.: Low Inflation More Than Weak Growth (The Wall Street Journal blogs)

Germany risks recession, in Bundesbank's bleak outlook (Reuters)

George Osborne set to miss deficit targets as Government borrowing jumps: Government borrowing, excluding public sector banks, rose to £11.8bn in September, £1.6bn greater than in the preceding year. (The Telegraph) It is truly shocking that our already huge budget deficit is still growing: The public finances are an Achilles’ Heel that could derail the Tories (The Telegraph)

China's economic growth slows to more than five-year low (The BBC) China's growth slowest since global crisis, annual target at risk (Reuters)

China GDP figures are bogus: Rickards: Jim Rickards, Chief Global Strategist at West Shore Funds, explains why he's not closely watching China's gross domestic product figures. (CNBC)



Democracy will lead to 'poor' dominating politics, say Hong Kong's China-backed governor: CY Leung makes controversial claim that "the poor" will have the largest say in politics if election candidates are chosen by public (The Telegraph) Hong Kong’s Leung Says Patience With Protesters Wearing Thin (Bloomberg)

America’s ugly economic truth: Why austerity is generating another slowdown: The global economy is ailing, and the damage done by fiscal policy is going to come crashing. Here's our sad fate (Salon)

Telefonica to Cut 18% of German Jobs [= about 1,600] After E-Plus Deal (Bloomberg)

Kimberly-Clark to cut up to 1,300 jobs after spinoff (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, October 20, 2014

Monday roundup (10-20-14)

BIS chief economist warns of dangers of easy money: The Bank of International Settlements (BIS) in Basel warned on Monday (Oct 20) that the current ultra-expansive monetary policy around the world could pose a threat to financial stability. (Agence France Presse)

Eurozone stagnation is a greater threat than debt: Monetary policy can boost markets in the shortrun, but this cannot be sustained indefinitely [Oct. 19] (The Financial Times) Portugal’s Debt Falls With Spain’s on Stagnation Concern (Bloomberg)

Unity on Eurozone Growth Eludes Germany and France (The New York Times)

France will cut deficit at appropriate pace: Sapin (Reuters)

France calls on Germany to invest 50 billion euros in eurozone: Ahead of a visit to Berlin, two French ministers have called on Germany to invest 50 billion euros. It is the same amount by which Paris is to reduce public spending. (Deutsche Welle)

Russia Rating Cut by Moody’s on Sluggish Economic Growth (Bloomberg)

Bank of England tells bankers to get used to lower pay: Sir Jon Cunliffe says shareholders have lost out as falling profitability at banks has failed to translate into lower pay packets (The Telegraph)

[In the US,] Dudley [who is president of the Federal Reserve Bank of NY] Warns Banks Must Improve Culture or Be Broken Up (Bloomberg)

Rising Inequality: Janet Yellen Tells It Like It Is (The New Yorker)

     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 19, 2014

Sunday roundup (10-19-14)

European Leaders Pivot to Debt Crisis After Wake-Up Call (Bloomberg)

The euro zone is slipping again: The problem this time could be more serious as the unease is emanating from Germany (LiveMint)

The rise in periphery bond yields is sovereign debt crisis, round 2 (Credit Writedowns 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.