Sunday, May 24, 2015

Sunday roundup (05-24-15)

HSBC fears world recession with no lifeboats left: The world authorities have run out of ammunition as rates remain stuck at zero. They have no margin for error as economy falters by Ambrose Evans-Pritchard (The Telegraph)

Protests [from Paris to Ouagadougou] against GMO crops and pesticides target Monsanto, international agribusiness giant (Agence France Presse)

Unemployment is a big threat to eurozone economy (Marketwatch)

Greece to miss IMF payments amid fears of 'catastrophic' eurozone rupture: A Greek reversion to the Drachma would be an irreversible "disaster" for the entire euro project, Yanis Varoufakis warns (The Telegraph) Greece warns it is set to default on debt repayment loans: Interior minister says Athens simply cannot satisfy IMF deadline next month unless it works out a deal with eurozone creditors (The Guardian) Greece hasn't got the money to make June IMF repayment - interior minister (Reuters) Greece will not make June IMF repayment: interior minister [The Financial Times via] (CNBC)

The Heat Is on Greece’s Alexis Tsipras, From Inside and Out (The New York Times)

Default alone will not bring any deliverance for Greece: Greece may escape its current plight by first defaulting, and then exiting the euro, writes Roger Bootle (The Telegraph)

Greece’s misery shows we need Chapter 11 bankruptcy for countries: Argentina defaulted in 2001, and is still not free of its creditors. There needs to be a clear resolution to the blight of vulture funds and neverending austerity (The Guardian)

Study: 41 percent [of Americans] expect no Social Security benefits (CNBC)

What the left still doesn’t understand about Fox News: The impact of the cable profit behemoth on American political life is wildly exaggerated. (Politico) [A response to an item in the Friday roundup] (Economic Signs of the Times blog)

What Will Drive Illinois to Ask Washington for a Bailout (The Daily Signal)

Alabama's dilemma: choosing between gambling or taxes to plug budget deficit: The debate in the conservative state over asking voters to approve casinos and a lottery as an alternative to raising taxes is producing some unlikely bedfellows (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.

Saturday, May 23, 2015

Saturday roundup (05-23-15)

Europe Said to Weigh Contingency Plans in Greece Impasse (Bloomberg)

Schaeuble: no alternatives to Greece fulfilling reform vows (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.

Friday, May 22, 2015

Friday roundup (05-22-15)

Greece's new currency would be 'rubbish': Citi's Buiter (CNBC)

'Grexit' poses medium-term risks to euro: Italy (Agence France Presse)

Secret Bank of England taskforce investigates financial fallout of Brexit: News of undercover project emerges after Bank staff accidentally email details to the Guardian including PR notes on how to deny its existence (The Guardian)

IMF urges Japan to take 'bold action' on reforms, debt mess (The Associated Press)

Fed on track to hike rates as economic headwinds wane - Yellen (Reuters)

The Agency That Barely Moves: The SEC is paralyzed by politics and poor leadership, staffers say (Bloomberg)

How Fox News Changed American Media and Political Dynamics (The Big Picture blog) [Meanwhile, back at the ranch:] The GOP Is Dying Off. Literally. (Politico)

Providence faces potential budget deficit of $11.5 million (The Providence Journal of Providence, Rhode Island)

Puerto Rico’s Debt Payments Set to Take Up 16% of Next Budget (Bloomberg)

Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises (The Independent)

     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, May 21, 2015

Thursday roundup (05-21-15)

Why Europe Will Lead the Charge to Eliminate Cash – the Next Step in a Global Meltdown (Armstrong Economics)

Eurozone Economy Continues to Grow Modestly, Survey Finds (The New York Times) ECB head Draghi: Growth is ‘too low everywhere’ in Europe (The Associated Press)

EU considers another bailout extension for Greece: reports (Marketwatch) [versus] Greece, creditors not in talks on extending bailout: Commission (Reuters)

Greek optimism about imminent deal not justified: Schaeuble (Reuters)

Until Europe writes down Greece's debt, the drama will continue to run (The Independent) History tells us how the Greek drama could end (CNBC)

Grand bargain emerging on Europe as Germany adjusts to Cameron victory: 'Everybody is very aware that Britain is the next big problem on the horizon. The mood is that we’ve got to save the British from themselves,' says Friends of Europe by Ambrose Evans-Pritchard (The Telegraph)

EU chief warns Ireland on need to reduce public debt: European Commission vice-president Jyrki Katainen – reforms best in benign conditions (The Irish Times)

Obama's trade deal clears key Senate hurdle (CBSNews) Senate Narrowly Advances President Obama's Trade Bill: Here’s Why It Was So Close (ABCNews)

Obama Trade Agenda Clears Elizabeth Warren Opposition Again (International Business Times) I’ve Read Obama’s Secret Trade Deal. Elizabeth Warren Is Right to Be Concerned. (Politico)

No. 4 House Democrat Says Obama Doesn’t Have Trade Votes (Bloomberg)

Fast Track a Bad Deal for Farmers and Our Food System, 110+ groups say (Institute for Agriculture and Trade Policy)

Fewer Homes for Sale Makes U.S. Housing Recovery Painstaking (Bloomberg)

5 questions for Hillary Clinton on Wall Street (CNN)

Murray Energy expects to lay off up to a quarter of workforce [= up to 1,800 workers] (Trib Total Media)

[UK's] Magnox to cut up to 1,600 jobs at nuclear power sites (The BBC)

HealthPlus to lay off 500, sell state contracts (The Detroit News)

     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, 05-21-15)

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.)

"The average of new claims over the past month ... fell by 5,500 to 266,250 to touch the lowest level since April 2000, the Labor Department said Thursday." (Marketwatch)

Jobless Claims in U.S. Fall Over Past Month to 15-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, May 20, 2015

Wednesday roundup (05-20-15)

Six [of the World's Biggest] Banks Pay $5.8 Billion, Five Guilty of Market Rigging (Bloomberg) Barclays handed biggest bank fine in UK history over 'brazen' currency rigging: Financial Conduct Authority's £284.4m penalty comes amid $6bn in fines for six banks for foreign exchange manipulation (The Telegraph)

Despite rise in growth, eurozone economy is still below 2008 level and faces a lost decade (The Associated Press)

Noyer: ECB will act if inflation target isn't met (Marketwatch)

Greece to default in June absent new loan: A senior spokesman for the Greek government has said Athens will have no choice but to default if the country's bailout lenders do not provide fresh funding by early June, when a repayment to the IMF comes due. (Deutsche Welle) Greece can't repay IMF on June 5 without a bailout deal, governing party official says (The Associated Press)

Defiant Greeks force Europe to negotiating table as time-bomb ticks: EMU creditors have Greece's Alexis Tsipras by the scruff of the neck, but he has a knife to their throats by Ambrose Evans-Pritchard (The Telegraph)

ECB raises emergency funding for Greek banks by 200 mln euros - source (Reuters) The ECB's in a Tight Spot Over Greece (Bloomberg)

Germany says 'Grexit' is possible (Dow Jones Newswires)

Portugal Sells Debt With a Negative Yield for the First Time (Bloomberg)

Bank of England rate-setters vote 9-0 to keep rates on hold, echo recent views (Reuters) Bank of England still firmly against interest rate rise (The BBC)

Japan debt plan needs BOJ to keep rates low for years - sources (Reuters)

'Debt monster' will devour West Australian assets, cash for decades, Opposition warns (The Australian Broadcasting Corporation)

Fed minutes show doubts about strength of US recovery (The Financial Times)

Half of college graduates expect to be supported by their families (Marketwatch)

For Many American States, It's Like the Recession Never Ended (Bloomberg)

As Illinois runs out of options in budget crisis, tax rises seen in the cards (Reuters)

San Bernardino council backs bankruptcy plan that hammers bondholders (Reuters)

Why Every American Should Care About Puerto Rico's Austerity Crisis (The Huffington Post)

NetApp to cut 500 jobs (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.

Tuesday, May 19, 2015

Tuesday roundup (05-19-15)

France warned to curb 'critically high' public spending by IMF: International Monetary Fund says "high and rising government spending has been at the heart of France’s fiscal problems for decades" (The Telegraph)

IMF Chief: Greek Bailout Talks Making Some Progress (Dow Jones Newswires) [Eurogroup chair] Dijsselbloem: Greece bailout talks 'progressing' (ekathimerini)

Europe faces second revolt as Portugal's ascendant Socialists spurn austerity: Germany is worried that any concession to Greece will set off political contagion and cause fiscal discipline to collapse across southern Europe by Ambrose Evans-Pritchard (The Telegraph)

UK inflation negative for the first time since 1960 (CNBC) It's official - Britain is in deflation: The UK has tipped into deflation - with overall prices for goods and services falling - for first time since records began (The Telegraph)

Japan Finance Ministry draft reveals deep rift on fiscal reform (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.