Friday, July 22, 2016

Friday roundup (07-22-2016)

Brexit Wreaks Havoc on U.K. Economy as Recession Risk Increases (Bloomberg)

[In the United States,] Tim Kaine Calls To Deregulate Banks As He Campaigns To Be Clinton’s VP: Who needs consumer protections when we have all these job creators? (The Huffington Post)

[Meanwhile,] Democratic Platform Grew More Liberal on Financial Regulation: Party looks to defend Consumer Financial Protection Bureau, backs a financial-transactions tax (The Wall Street Journal) 2016 The Democratic Platform (Democratic National Convention)

Lufthansa to Eliminate 700 Jobs at Engine-Maintenance Division (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.

Thursday, July 21, 2016

Thursday roundup (07-21-2016)

European Central Bank keeps interest rates at record low (The Associated Press) ECB's Draghi promises more eurozone stimulus if needed because of Brexit (euronews) Draghi Has Lost It Completely by Martin Armstrong (Armstrong Economics blog)

U.S.'s Lew urges Greece to stay on budget reform path (Reuters)

Why Italy’s banks could ignite a eurozone crisis: What you need to know about country’s banking woes (Marketwatch) Italy doesn’t have a banking crisis; it has a euro crisis: Italy’s biggest problem is slow growth since joining the euro (Marketwatch)

Turkey suspends European Convention on Human Rights in wake of coup: Erdogan ministers reassure public Turkey is not returning to martial law (The Independent) State of emergency must not roll back human rights in Turkey (Amnesty International)

[In the United States,] FBI arrests senior HSBC banker accused of rigging multibillion-dollar deal: Mark Johnson and a colleague allegedly defrauded clients and ‘manipulated the foreign exchange market to benefit themselves and their bank’ (The Guardian) Is Front Running Now a Crime? by Martin Armstrong (Armstrong Economics blog)

Trump caps stunning GOP run, accepts party's nod with jabs at his rivals (CNBC)

Inside Ted Cruz's ill-fated non-endorsement of Donald Trump (CNN) Ted Cruz’s Betrayal of Donald Trump Was Brilliant: If his bet pays off, he'll be the presumptive frontrunner in the 2020 primary. (The New Republic)

What's one thing Democrats and the GOP agree on? Restore Glass-Steagall: Yes, Republican presidential candidate Donald Trump and none other than Elizabeth Warren, his Twitter arch-nemesis, have agreed on a policy initiative (The Guardian)

Roger Ailes out as Fox News Chairman (ABCNews) Roger Ailes Stepping Down As Fox News CEO As Rupert Murdoch Takes Over Role: “There are people in tears,” says “Fox News Sunday” host Chris Wallace. “I shed mine a couple of days ago.” (The Huffington Post) Roger Ailes Resigns: A Timeline of His Downfall (Forbes) 21st Century Fox launching 'internal review' at Fox News following Gretchen Carlson lawsuit [July 6] (Politico) Roger Ailes accused of harassment by at least 20 women, attorneys say: Accusations against Fox News CEO have poured in since former host Gretchen Carlson filed a lawsuit, her legal team say, with some claims dating back decades (The Guardian) Sources: Megyn Kelly Told Murdoch Investigators That Roger Ailes Sexually Harassed Her (New York) Megyn Kelly Encouraged a Female Colleague to Testify Against Roger Ailes (New York)

General Mills to Cut 1,400 Jobs World-Wide (Dow Jones Newswires)

ConocoPhillips to shed 1,000 jobs (FuelFix 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, 07-21-16)

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.)

"The number of Americans who applied for unemployment benefits last week fell by 1,000 to 253,000, matching the second lowest level of a seven-year-old economic expansion that shows no signs of flagging." (Marketwatch)

Jobless Claims in U.S. Unexpectedly Decline to Three-Month 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, July 20, 2016

Wednesday roundup (07-20-2016)

After Brexit, EU consumer morale falls more than euro zone in July (Reuters)

Italy will DESTROY EU: Warning as Italian referendum to spark euro economic APOCALYPSE: ITALY is on the brink of financial and political meltdown as the leader of the Eurozone’s third-largest economy tinkers on the edge of career suicide, plunging the already beleaguered European Union into fresh chaos. (The Express)

     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 19, 2016

Tuesday roundup (07-19-2016)

EU court says bail-in legal but bank rescues need not hit investors (Reuters)

German business confidence falls to lowest level since November 2012 (CNBC)

The Italian job: Why Italy's lenders require €40bn bailout but its hands are tied by savers' obsession with buying bank bonds (This is Money)

WSJ: "A rate increase [in the United States] could come as early as September if economic data hold firm" (Calculated Risk blog)

It's official: Trump is Republican nominee (CNN)

Melania Trump on convention speech: 'I wrote it with as little help as possible' (Today) Speechwriters agog at Melania Trump plagiarism snafu: "My guess is their system is completely haphazard.” (Politico)

Forget Melania Trump. The Republican party platform is the circus we need to watch. (The Washington Post) The 2016 Republican Party Platform (GOP)

Glass-Steagall: Wall Street is not happy with Donald Trump: The GOP candidate’s pledge to bring back Glass-Steagall is an unwelcome surprise for the financial services industry. (CNBC) G.O.P. Joins Democrats Urging Glass-Steagall’s Revival. (Don’t Hold Your Breath.) (The New York Times) Wall Street Takes a Hit in Democratic Party’s Platform Draft [July 3] (Bloomberg)

Why Clinton could still tap Wall Street talent despite platform pledge: ‘Revolving door’ ban may not entirely rule out Wall Street veterans (Marketwatch)

Dallas-based Comerica Inc. to cut 800 jobs, close locations in move to save $160 million (The Dallas Morning News)

Construction firm Dunne Group folds with loss of 524 jobs: Failure of Scottish firm, which worked on London skyscrapers, leaves hundreds more subcontractors facing uncertain futures (The Guardian)

     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, July 18, 2016

Monday roundup (07-18-2016)

EU's Moscovici urges Greece to stick to reforms for more debt relief (Reuters)

Analysts Fear Looming Italian Bank Failure (Breitbart)

Jobs and employment: Seven reasons the US picture is still weak (CNBC)

Debt Dangers: Why the U.S. needs to start reducing its national debt now. (US News & World Report)

CalPERS posts worst year since 2009, with slim returns (The Los Angeles Times)

Trump Calls for Restoration of Glass-Steagall, Echoing Warren (The American Banker) GOP Platform to Call for Breaking Up the Big Banks, Trump Campaign Says (New York)

DONALD TRUMP’S GHOSTWRITER TELLS ALL: “The Art of the Deal” made America see Trump as a charmer with an unfailing knack for business. Tony Schwartz helped create that myth—and regrets it. [-- "If Trump is elected President, he warned, 'the millions of people who voted for him and believe that he represents their interests will learn what anyone who deals closely with him already knows—that he couldn’t care less about them.'"] (The New Yorker) Donald Trump's Co-Author Regrets Writing The Art of the Deal and Says Trump Presidency Could 'End Civilization' (People)

     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, July 17, 2016

Sunday roundup (07-17-2016)

Debt is a 'financially-enhanced drug' (The Business Insider)

Diesel Emissions: EU Commission Has Known for Years about Manipluation: The European Commission insists that it knew nothing about diesel emissions manipulations perpetrated by Volkswagen and other automobile manufacturers. Documents obtained by SPIEGEL ONLINE show otherwise. (Spiegel Online)

The chief economist of the Bank of England said too few people are benefiting from the economic recovery (The Business Insider)

Japan flirts with helicopter money (The Financial Times)

Georgia Power announces [about 570] layoffs, opening new payment locations across state (WTVM)

     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.