Sunday, August 2, 2015

Sunday roundup (8-2-15)

It would take many months or years for Greece to lift capital controls - by Cyprus's example (Xinhua)

French finance minister takes aim at German Schaeuble over Grexit idea (Reuters)

Bank of England split on rate hike: Officials to clash at key meeting this week with some expected to call for an immediate rise (This is Money)

Another Dubai debt crunch is looming as oil slump hits Gulf: Persian Gulf emirate could suffer the most as falling oil prices hit economies across the Middle East (The Telegraph)

China's Dilemma: Is it 1987 or 1929?: If Chinese policymakers don’t alter course soon, the current Chinese equity market correction could turn into a stock market plunge similar to what happened in the United States in 1929. (Guggenheim Partners)

The U.S. Economy Is on Track to Finish a Decade Without Significant Growth: It would take a miracle for growth to reach 3 percent this year, marking a decade without it (Bloomberg)

US economist denies being part of 'criminal gang' over secret Plan B for Greece: James K. Galbraith does not expect to face criminal trial in Greece for being part of a five-man team, led by Yanis Varoufakis, carrying out contingency planning if the country was forced out of the euro (The Telegraph)

Univita companies to lay off 1,002 after losing Medicaid contract (The Sun Sentinel of Fort Lauderdale, Florida)

     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, August 1, 2015

Saturday roundup (8-1-15)

Greece may seek up to 24 billion euros in first new aid tranche: paper (Reuters)

Greek Financial Markets to Reopen After Five-Week Shutdown (Bloomberg)

Recovery of UK economy slowest ever, say unions: The economic bounce-back was three times faster in the thirties. And infrastructure lacks investment (The Independent)

[In the United States,] Goldman tentatively agrees to pay $270 million to settle lawsuit: source (Reuters)

July 2015: Unofficial Problem Bank list declines to 290 Institutions (Calculated Risk blog)

Wildfires prompt Brown to declare state of emergency in Calif. (USAToday)

Here It Comes: Puerto Rico Is Headed for a Debt Default (Slate 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.

Friday, July 31, 2015

Friday roundup (07-31-15)

Wage growth slows sharply in second quarter [in the United States] (USAToday) US wage growth falls to record-slow pace in 2nd quarter (The Associated Press)

Jimmy Carter: The U.S. Is an "Oligarchy With Unlimited Political Bribery" (FirstLook) Jimmy Carter: U.S. Is an 'Oligarchy With Unlimited Political Bribery': The 39th president said the 'Citizens United' ruling 'violates the essence of what made America a great country in its political system' (Rolling Stone)

Rick Perry Has Finally Discovered the Wonders of Financial Regulation (New Republic)

[Large Financial Firms Are] Still Too Big to Fail by Simon Johnson (Project Syndicate)

Fact Sheet: Glass-Steagall Financial Reform Law and Efforts to Reinstate It (Better Markets)

Ingram Micro Reports Q2 Loss, Plans Layoffs [Of Up To 540 Persons] In $100 Million Cost-Cutting Program (CRN)

Japan spending slump heightens chance of second quarter contraction (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, July 30, 2015

Thursday roundup (07-30-15)

Greece crisis escalates as IMF witholds support for a new bail-out deal: Talks over new rescue package are derailed after less than a week as IMF seeks explicit assurances over debt relief from the Europeans (The Telegraph) IMF board says Fund cannot join Greece bailout talks now - FT (Reuters) €86bn IMF cannot join Greek rescue, board told [The Financial Times via] (CNBC) Greek bailout in jeopardy as IMF doubts grow (The Times of London)




Who’s Nexit?: As many as five other eurozone countries are flirting with trouble [= Portugal, Spain, Ireland, France, and Italy]. Could one of them be the first to leave the common currency? (Foreign Policy)




U.S. economy didn’t grow as fast as we were told from 2012 to 2014 (Marketwatch) The post-recession economy is worse than we thought: Revisions in previous years’ data show that the economy has grown more slowly following the recession than we originally thought. (Fortune)

The American People Deserve to Know Where Candidates Stand on Glass-Steagall (The Huffington Post)

Brazil central govt posts $2.43 bln June primary budget deficit (Reuters)

Shell Cuts 6,500 Jobs and Slashes Spending on Prolonged Downturn (Bloomberg) Royal Dutch Shell Profits Continue to Fall, Prompting Layoffs (The New York Times)

British Gas owner Centrica cuts thousands of jobs [= 6,000]: Scaling back of energy company’s business comes despite a doubling in profits at residential power supply business (The Guardian)

Mondelez layoffs [numbering 600] ahead in Chicago, announces latest supply chain investment (FoodDive)

Atomic Weapons Establishment to cut 500 jobs (The BBC)

     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, 07-30-15)

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 rose by 12,000 to 267,000 in the seven days ended July 25, the Labor Department said. The rise was less than expected." (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, July 29, 2015

Wednesday roundup (07-29-15)

Rising global debt is increasing the risk of another financial crisis (The Los Angeles Times)

European 'alliance of national liberation fronts' emerges to avenge Greek defeat: For the pony-tailed leader of Spain's Podemos movement, the Leninist lesson of Greece is that revolutionary forces must show an iron fist by Ambrose Evans-Pritchard (The Telegraph)

IMF's Lagarde: Greek debt restructuring 'inevitable': The head of the International Monetary Fund, Christine Lagarde, has insisted that any new bailout program for Greece requires significant restructuring of the cash-strapped eurozone nation's massive debt load. (Deutsche Welle)

Alexis Tsipras Faces Race Against Time to Secure Greece Bailout Deal: Talks between Athens and troika to begin after damaging weeklong holdup, while Syriza party cracks deepen (The Wall Street Journal) Greece's Tsipras on shaky ground, warns of elections (CNBC)

Grexit threat remains until Greece secures debt relief deal: PM (Xinhua)

U.S. Importers and Greek Suppliers Stymied by Cash Controls (The New York Times)

The Greek Warrior: How a radical finance minister took on Europe—and failed. (The New Yorker)

How Germany Prevailed in the Greek Bailout (The New York Times)

French unemployed number creeps up to new record (Marketwatch)

Agricultural Crisis In France: Farmers Block Highways, Set Pigs Loose In Supermarkets To Protest Market Conditions (International Business Times)

Italy needs 20 years to tackle jobless rate: IMF (The Local)

IMF Says Japan’s Growth to 2020 Will Be Worse Than in Deflation Years (Bloomberg)

US economy still in 'balance sheet recession,' economist Roach says (CNBC)

Fed keeps interest rate unchanged, seeks further economic gains before starting [interest rate] hikes (The Associated Press)

U.S. can stay under debt ceiling through at least late Oct: Treasury chief (Reuters)

Weird: Only 3 new U.S. banks opened since 2010 (CNNMoney)

'Too Big to Fail' Is Still a Problem. Here's How D.C. Wants to End It.: Leaders in the world of financial regulation talk about how to pick up where Dodd-Frank left off—or how to scrap the law and start over entirely. (National Journal)

Rick Perry Channels [Sen. Elizabeth] Warren in 'Too Big to Fail' Speech (American Banker) Rick Perry backs Glass-Steagall solution for Wall Street (The Hill) Rick Perry’s Plan To End ‘Too Big To Fail’ (The Washington Post)

A tale of two Hillarys (The Hill) The 6 big issues where we still don’t know where Hillary Clinton stands (The Washington Post)

California Drought Could Wipe Cities Off Map If Their Water Runs Out (CBSSacramento)

Harvard Professor Now Says Venezuela Won’t Escape Default in ’16 (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, July 28, 2015

Tuesday roundup (07-28-15)

Demand Troubles Risk Cementing a Decade of Anemic Global Growth (The Wall Street Journal blogs)

Preparing for Global Deflation (LinkedIn)

The Lethal Deferral of Greek Debt Restructuring by Yanis Varoufakis (Project Syndicate)

The Greek Bailout Has Shaken Germany to the Core (Newsweek) Germany, Greece, and the Future of Europe [Project Syndicate via] (The Huffington Post)

Mortgage debt reaches £1 trillion in the UK (Ham&High Property)




13 Per Cent of Canadians Believe They'll Be in Debt Forever (KelownaNow)

Plunge in Consumer Confidence Exposes Risk for U.S. Economy (Bloomberg)

Wall Street is in Hillary Clinton's corner (USAToday) O'Malley hits Clinton's ties to Wall Street (The Hill blogs)

This is How We Reform Wall Street (The Huffington Post)

Is the Democratic Party Abandoning Jefferson and Jackson?: Connecticut, Missouri, and Georgia have dropped the slave-owning presidents from their annual fund-raising dinners, and many more states could follow suit. (The Atlantic)

Italy’s [Oil And Gas Contractor] Saipem Plans 8,800 Job Cuts After Profit Goals Cut (Bloomberg)

Chevron to lay off 1,500 workers amidst oil price slump (Reuters)

Vodafone Plans to Cut 1,300 Spanish Jobs (Agence France Presse)

     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.