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.

Saturday, October 18, 2014

Saturday roundup (10-18-14)

Why the eurozone’s woes have become the world’s problem: The explanation for the plunge on global financial markets comes down to one word: Europe (The Observer)

Why To Worry About Deflation by Paul Krugman (The New York Times blogs)

Unofficial Problem Bank list [in the US] declines to 426 Institutions (Calculated Risk blog)

NBRS Financial, Rising Sun, MD, Becomes 15th Bank Failure of 2014 [as posted here yesterday] (Problem Bank List)

     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, October 17, 2014

Friday roundup (10-17-14)

Stock market turmoil and the global debt trap (The Washington Post)

EU Should Consider Suspending Debt Rules, Dallara Says (Bloomberg)

Eurozone crisis, five years on: no happy ending in sight for Greek odyssey: Currency bloc is locked into a low-growth, low-inflation, high-unemployment paradigm (The Guardian)

Before a Bailout, E.C.B. Minutes Showed Doubts Over Keeping a Cyprus Bank Afloat (The New York Times blogs) ECB minutes leaked out for first time (Marketwatch)

Spanish public debt reaches 1.01 trillion euros in August (Cihan/Xinhua)

Bank of England may keep rates low for longer, says chief economist (Reuters)

Citing U.S. values, Yellen says greatly concerned by rise in economic inequality (Reuters)

Regulators Close Small Maryland Bank (The Associated Press) NBRS Financial of Rising Sun MD had a troubled assets ratio of 143.2%. (BankTracker)

Telefonica Deutschland to cut 1,600 German jobs by 2018 - source (Reuters)

BB&T cutting about 800 jobs (The Winston-Salem Journal) [versus] Reports of BB&T job cuts exaggerated, spokeswoman says (Charlotte Business Journal)

iPhone glass maker to cut 727 jobs at Mesa factory (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.

Thursday, October 16, 2014

Thursday roundup (10-16-14)

5 Reasons to Worry About Deflation (The Wall Street Journal blogs)

World braces as deflation tremors hit Eurozone bond markets: 'The forces of monetary deflation are gathering. Global liquidity is declining and central banks are not doing enough, either in the West or the East to offset the decline,' warns CrossBorderCapital by Ambrose Evans-Pritchard (The Telegraph) Euro zone back in firing line over growth, lowflation, Greece (Reuters)

Deflation stalks Europe's periphery as inflation hits 5-year low (Reuters)

Specter of Renewed Crisis Polarizes Europe (The New York Times)

ECB bank health checks will not solve problems, EU warned (Reuters)

Germany reads the riot act to spendthrift France and Italy: Angela Merkel warns Eurozone countries that recovery is 'too fragile' to be threatened by more borrowing (The Daily Mail) Merkel urges EU to keep up reforms as [, she says, the] crisis [is] not over (Reuters) Why Germany won't fight deflation (The BBC) Germany's Merkel Warns France Over Budget Deficit (The Associated Press)

ECB eyes extra funding for Greek banks as Athens markets plunge (Reuters)

China Inc's spending cuts deepest in six years as economy slows (Reuters)

Will deflation fears [in the United States] prolong QE or delay the rate hike? (The Washington Post blogs) Bullard Says Fed Should Consider Delay in Ending QE (Bloomberg) [Nonetheless,] Fed likely to end bond buying, may signal caution on rate hikes (Reuters)

Inside the Fed’s ‘Doomsday Book’ (The Wall Street Journal blogs) [compare:] Crisis may make 1929 look a 'walk in the park': As central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues that things risk spiralling out of their control [Dec. 22, 2007] (The Telegraph)

Economic Jitters Are Back As American Debt Soars To $18 Trillion in 6 Years (The New York Sun)

The U.S. Economic Recovery Is Still On Food Stamps (Real Clear Markets)

Office Depot to cut 1,100 jobs in Europe (Reuters)

Advanced Micro Devices plans [about 700] layoffs (Marketwatch)

Va. to cut 565 jobs, shut Powhatan prison to close money gap (The Richmond Times-Dispatch)

     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, 10-16-14)

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. jobless benefits fell 23,000 to 264,000 in the week that ended Oct. 11, hitting the lowest level since April 2000, showing that employers are laying off few workers, according to government data released Thursday." (Marketwatch)

Jobless Claims in U.S. Unexpectedly Decrease to 14-Year Low (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 15, 2014

Wednesday roundup (10-15-14)

Risk of Deflation Feeds Global Fears: Falling Commodities Prices Pressures Central Banks (The Wall Street Journal) The Depressing Signals the Markets Are Sending About the Global Economy (The New York Times) Europe Is Flirting With A Bizarre New Kind Of Economic Meltdown That Hasn't Been Seen Since The 1930s (The Business Insider)

World economy so damaged it may need permanent QE: Markets are realising that the five-and-a-half year recovery since the financial crisis may already be over, says Ambrose Evans-Pritchard (The Telegraph)

U.S. warns Europe on deflation, says ECB actions may fall short (Reuters)

EU Starts Two-Week Austerity Scrutiny as Crisis Reawakens (Bloomberg)

Italy Joins France on Potential Collision Course With Europe Over Budgets: Renzi Plans Tax Cuts to Try to Jump-Start Economy, Delaying Deficit Reduction (The Wall Street Journal)

Portugal to Stick With Austerity Program in 2015 (The Associated Press)

Ukraine’s economy choking under Russian pressure, but Western help is scarce (The Washington Post)

In 2014, U.S. Budget Deficit Falls To Pre-Recession Level (National Public Radio) Federal deficit down, debt still rising (McClatchy Washington Bureau)

Weaker Retail Sales Signal Smaller Spending Boost: Economy (Bloomberg) Big Misses for Retail Sales, NY Manufacturing (The Mess That Greenspan Made blog)

Why Can't People Feel the Economic Recovery?: Unemployment may be down, but getting ahead remains out of reach. (The Atlantic)

France to cut 7,500 military jobs in new budget cuts (Radio France International)

Siemens to cut 1,200 jobs: media (Xinhua)

Va. to cut 565 state jobs due to budget shortfall (WWBT)

     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.