Tuesday, July 22, 2014

Tuesday roundup (07-22-14)

Global Food Prices are Deflating (Pragmatic Capitalism)

Economic meltdown scenario [involving the whole world] piles pressure on Russia and the west: Policymakers dread [the possibility that an economic] slump in Russsia – from further sanctions by the west – would trigger another global economic meltdown (The Guardian) How far do EU-US sanctions on Russia go? (The BBC)

Eurozone public debt rises sharply: Eurostat (Agence France Presse) Eurozone public debt surges: Public debt in the 18-member eurozone soared to a record high in the first quarter of 2014. The embattled economies of southern European nations accounted for much of the increase. (Deutsche Welle)

Eurozone economy dead in the water, with crisis expected to carry on 'a long time' (The Telegraph blogs)

Europe Between Financial Repression and Regulatory Capture by Stefano Pagliari, Shahin Vallée and Éric Monnet [Bruegel Working Paper] (Archive of European Integration of The University of Pittsburgh)

Deutsche Bank Suffers From Litany of Reporting Problems, Regulators Said: Letter From New York Fed Said Some Reports From Deutsche Bank's U.S. Operations Were 'Inaccurate and Unreliable' (The Wall Street Journal)

Our rocketing national debt pile is the British economy’s Achilles’ Heel: The deficit for the first three months of the fiscal year stood at £36.1bn, 7.3pc more than the £33.7bn racked up during the same time last year (The Telegraph) George Osborne's deficit reduction plan under pressure as borrowing rises: Chancellor set to miss deficit reduction target for 2014/2015 after borrowing rises in first three months of fiscal year (The Telegraph)

China’s terrifying debt ratios poised to breeze past US levels by Ambrose Evans-Pritchard (The Telegraph blogs)

Inflation Was Much Higher [in the United States] Pre-Crisis than Post-Crisis (The Big Picture blog)

Contrarian's Case: Why US Could Dip Into Recession (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.

Monday, July 21, 2014

Monday roundup (07-21-14)

Espirito Santo crisis could affect Portugal's economy, warns president Anibal Cavaco Silva: President's warning comes just days after holding company of country's second-largest bank says it can't meet its obligations (The Telegraph)

In the Eye of the Debt Storm [in the US]: Don't be fooled by rosy talk; the long-term budget outlook is still terrible. (U. S. News & World Report)

Four years later, parties split on Wall St. reform (The Hill) Four years later, Dodd-Frank continues 'Too Big to Fail' by Sen. David Vitter (R) of Louisiana (The Hill) Derailing the American Dream since 2010: Thanks a lot, Dodd-Frank by Rep. Jeb Hensarling (R) of Texas (FoxNews) 4 years later, Dodd-Frank is still only halfway implemented (The Washington Post blogs)

Derivatives Meltdown Part 2 + Let’s See How Obama/Kerry Respond To This… (Investment Research Dynamics) Derivatives Part 2 - Casino Accounting: Heads Banks Win Tails You Lose (Youtube)



How Derivatives Will Trigger A Bond Market Melt-Down (Part 1) (Economic Signs of the Times blog)

A Grocery Store Chain Fired A Popular CEO — And Now Workers Are Making The Company Pay (The Business Insider)

Allergan to cut about 1,500 jobs to evade Valeant takeover (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.

Sunday, July 20, 2014

Sunday roundup (07-20-14)

Eurozone needs quantitative easing: The European Central Bank has to hit its inflation target [editorial] (The Financial Times)

Flint [Michigan] manager warns of bankruptcy over retiree costs: 'A lot of cities are on the same train, and that train is headed for the cliff.' (Crain's Detroit Business)

     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, July 19, 2014

Saturday roundup (07-19-14)

UK economic recovery not 'firmly rooted', warns Kenneth Clarke: Former Tory chancellor expresses fears over productivity and warns against triumphalism over 'a bit of cyclical upswing' (The Observer)

Unofficial Problem Bank list declines to 463 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 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 18, 2014

Friday roundup (07-18-14)

Bank of Italy cuts [Italy's] 2014 growth forecast (Marketwatch)

James Turk and John Rubino: John Rubino and James Turk discuss their new book, "The Money Bubble. What to Do Before it Pops?" and also our flawed monetary policy and also talk about what may happen when systems break down and then give their thoughts on how to prepare. [Actually the show ends before the get to the last point.] (Youtube)



US Regulators Close Small Bank in Georgia (The Associated Press) Eastside Commercial Bank of Conyers GA had a troubled assets ratio of 494.3 percent. (BankTracker) Eastside Commercial Bank, Conyers, GA, Becomes 13th Bank Failure of 2014 (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.

Thursday, July 17, 2014

Thursday roundup (07-17-14)

Deflation fears dog ECB as consumer price rises in the eurozone remain low at just 0.5% in June (This is Money) Deflation still threatens euro zone, growth steady at best: Reuters poll (Reuters)

ECB will give Eurozone banks just two weeks to devise plan to get their houses in order (CityAM) E.C.B. Sets Tight Deadline for Troubled Eurozone Banks (The New York Times)

ECB will disclose unprecedented data after bank stress tests (Reuters)

Eurozone tensions rise as French-German economic chasm widens: Divergence of eurozone giants to cause problems for economic policymaking (The Telegraph)

We need to rein in 'too big to fail' banks [in the United States] by Elizabeth Warren, John McCain, Maria Cantwell and Angus King (CNN)

Sizing Up a Potential Media Marriage [between Time Warner and 21st Century Fox; Bloomberg Visual Data via] (The Big Picture blog)

Downtown L.A. is now driest since rain records started in 1877 (The Los Angeles Times)

Microsoft to cut [up to] 18,000 jobs this year as it chops Nokia (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.

Is it a recovery yet? (Weekly report, 07-17-14)

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.)

"In the week that ended July 12, the number of initial filings for regular state unemployment-insurance benefits fell by 3,000 to 302,000, the fewest new weekly filings since May, the U.S. Labor Department reported." (Marketwatch)

US initial jobless claims drop; 4-week average at lowest since 2007 (The Associated Press)

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.