Tuesday, July 29, 2014

Tuesday roundup (07-29-14)

Quote of the Day:

"Such an outpouring of goodwill for a millionaire CEO from hourly wage workers confounds our sense of how business in America works today." -- Journalist Luke O'Neil, in reference to employee demands that Arthur T. Demoulas be restored as CEO of Market Basket supermarkets (Slate)

IMF: Rising rates, emerging market slowdown could dampen global growth (The Washington Post blogs)

Russia sanctions threaten to blow euro zone off course (Reuters)

Euro zone efforts to boost inflation are full of hot air: ECB policymakers are short on tools — and time by Satyajit Das (Marketwatch)

Europe's bond yields lowest since 15th century Genoa on deflation, Russia risk: German, French and Dutch yields have been sliding for months as the eurozone recovery wilts and several countries flirt with recession by Ambrose Evans-Pritchard (The Telegraph) European bond yields enter the death zone (The Telegraph blogs)

German Bund Record Shows All Is Not Right in Euro Area (Bloomberg)

IMF's Christine Lagarde says Ukraine may need more aid (Agence France Presse)  [In fact, according to] IMF Chief: Ukraine May Need a New Bailout Strategy [Altogether] (The Wall Street Journal blogs)

‘Do no harm?’: Calls [in UK] for banking Hippocratic oath (CNBC) Virtuous Banking: Placing ethos and purpose at the heart of finance by David T. Llewellyn, Roger Steare, Jessica Trevellick (ResPublica)

A third of Americans delinquent on debt (USAToday)

California couple spends retirement funds paying off deceased daughter's $200,000 student debt: Lisa Mason died suddenly in 2007, but her $200,000 student loan bill didn't disappear. Her parents, Steve and Darnelle, have used up most of their savings paying off her debt while caring for her three children. 'Getting (my daughter) an education has encumbered me for the rest of my life,' Steve said. (The New York Daily News) Daughter suddenly dies, grieving parents hit with $200,000 in student loans (Fox13)

U.S. homeownership at 18-year low in second quarter (Marketwatch)

Osram to cut almost 8,000 jobs in switch to LED (Reuters)

Amgen Says It Will Cut More Than 2,400 Jobs Worldwide (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.

Monday, July 28, 2014

Monday roundup (07-28-14)

Why the super rich are running scared of inequality by Steve Keen [Commentary on the book The Next Economic Disaster: Why It's Coming and How to Avoid It? by Richard Vague] (Business Spectator)

We're in a private debt crisis that could lead to the next economic collapse: Richard Vague [March 28] (Yahoo!'s The Daily Ticker)



Understanding Debt Economics with Richard Vague and Steve Clemons [November 2012] (Youtube)



The Pitchforks Are Coming … For Us Plutocrats -- ["The problem is that inequality is at historically high levels and getting worse every day. Our country is rapidly becoming less a capitalist society and more a feudal society.] (Politico)

Germany Has the Most Unequal Distribution of Wealth in the Eurozone (The Huffington Post)

Throw crooked [UK] bankers in jail: Clamour grows as Bank of England chief [Mark Carney] says Lloyds traders 'clearly broke the law' (The Daily Mail) Bank of England governor blasts 'unlawful' Lloyds over bailout funding: Taxpayer-owned bank must repay nearly £8m on top of £218 in Libor fines – and could face criminal action over repo rate (The Guardian)

Keep UK interest rate low for now, IMF tells Bank of England: International Monetary Fund warns Bank to be ready to raise rates if other measure fail to keep housing market in check (The Guardian)

Why the Fed could start raising rates sooner than you think (CNBC)

Pending Sales of U.S. Existing Homes Unexpectedly Decrease ["a sign residential real estate is struggling to strengthen"] (Bloomberg)

Did Dodd-Frank Work? [July 21] (The New York Times)

Changing Old Antitrust Thinking for a New Gilded Age [July 22] (The New York Times blogs)

When Media Mergers Limit More Than Competition (The New York Times)

Dollar Tree buying peer Family Dollar Stores for approximately $8.5 billion (The Associated Press) Dollar General may be in play ["The biggest obstacle to such a deal may be antitrust concerns..."] (Marketwatch blogs) Dollar Tree Agrees to Acquire Family Dollar for $8.5 Billion [antitrust comments in comment section] (Bloomberg)

Property website Zillow to buy rival Trulia to cut costs (Reuters) [Zillow's CEO "said he did not expect the merger to face opposition from antitrust regulators"] (The New York Times blogs)

Market Basket Boycott Enters Second Week [in New England] (WGBH) How Market Basket Keeps Prices Low ["First and foremost ... the fact that the company does not carry any debt is a big help ..."] (The Boston Globe)

Your chicken is about to get more full of feces: Obama is letting the poultry industry run wild (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.

Sunday, July 27, 2014

Sunday roundup (07-27-14)

Eurozone Must Brace for New Shocks (The New York Times)

ECB backs Bundesbank call for higher German wages - Der Spiegel (Reuters)

The Typical [US] Household, Now Worth a Third Less (The New York Times) WEALTH DISPARITIES BEFORE AND AFTER THE GREAT RECESSION by Fabian T. Pfeffer, Sheldon Danziger, and Robert F. Schoeni, University of Michigan (Russell Sage Foundation)

My party has lost its soul: Bill Clinton, Barack Obama and the victory of Wall Street Democrats: A former Clinton aide on how Democrats lost their way chasing Wall Street cash, and new populism the party needs (Salon)

     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 26, 2014

Saturday roundup (07-26-14)

Argentina is now very close to default [= "just a few days" away] (CNNMoney)

Severe Storms Threaten 100 Million Americans: The next 36 hours could bring dangerous and destructive weather, including tornado threats for parts of the Midwest. (NBCNews)



The Tonight Show. Johnny Carson & Ed McMahon (June 15, 1976) [audio only; reference to tornadoes and severe hail storm] (Youtube)



'Too big to fail' equals 'too eager to borrow' (The Los Angeles Times)

Regulators take over small bank in Illinois; brings US bank failures to 14 in 2014 (The Associated Press) GreenChoice Bank, fsb of Chicago IL had a troubled assets ratio of 349.4 percent, compared with a national median at this time of 8 percent. (BankTracker) GreenChoice Bank, fsb, Chicago, IL, Closed by Regulators (Problem Bank List)

Unofficial Problem Bank list declines to 452 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 25, 2014

Friday roundup (07-25-14)

Huge electrical storm in 2012 nearly shut down modern life, CU researcher says (Colorado Public Radio) That was a close one! Study: Massive solar storm barely missed us in 2012 (CNN) ScienceCasts: Carrington-class CME Narrowly Misses Earth (Youtube)



Britain’s economy: 4 big problems with Osborne’s recovery (The Daily Mirror) Don’t get too excited about Britain’s economic recovery. It’s built on shaky ground (The Spectator)

[United States] Senate to Revisit ‘Too Big to Fail’: Next week a Senate committee will review a GAO study expected to show that large U.S. banks are still perceived as having implicit government backing. (CFO)

'Shocking' underground water loss in US drought (PhysOrg) Satellite study indicates groundwater losses putting Southwest supply in jeopardy (The Associated Press)

California Tries to Measure Water Use as Drought Worsens (Bloomberg) California's Drought Turning the State Brown, NASA Images Show (Weather)

Family feud sparks workers' revolt at New England grocery store chain; workers want CEO back (The Associated Press) Thousands rally in Mass. for return of ousted Market Basket CEO (Reuters) Meet America’s Most Beloved CEO—Too Bad He Just Got Fired (Time) An ousted CEO so popular employees are protesting to get his job back (The Washington Post blogs)

Tyson Foods to shut three factories, cut 950 jobs (Reuters)

Merck Cuts 600 Sales Reps as Part of its Ongoing Reorganization (The Wall Street Journal 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.

Thursday, July 24, 2014

Thursday roundup (07-24-14)

IMF Cuts US and Global Growth Forecasts for 2014 (The Associated Press)

Germany's current-account surplus is partly to blame for eurozone stagnation: With Germany unwilling to spend, it is up to ECB president Mario Draghi to devalue the currency for a much-needed boost (The Guardian)

French Manufacturing Contracts in Sign of Sluggish Recovery (Bloomberg)

Rate rise [in the UK] to 3pc in 2018 would make 800,000 borrowers 'mortgage prisoners': Report warns of a sharp rise in those tipped over the edge by rising rates and that 800,000 "highly geared" borrowers may become mortgage prisoners (The Telegraph)

Japan walking 'tightrope' on public debt as yields set to rise: Amari (Reuters)

How High Debt [in the United States] From The Housing Collapse Still Stifles Our Economy: Seven years after the subprime mortgage crisis, the U. S. economy has not yet fully recovered. Now two economists have come up with new evidence about what's holding the economy back. (National Public Radio)



Record Student-Loan Debt Prompts Treasury Push to Stem Defaults (Bloomberg)

After Split Vote, S.E.C. Approves Rules on Money Market Funds (The New York Times blogs) The "Gates" Are Closing: SEC Votes Through Money Market Reform (ZeroHedge blog) ["New SEC fund rules are to 'prevent runs'. Translation: When you want your money, you can't have it. Bail-in is here."] [Jim Rickards @] (Twitter) ["ANYONE who keeps their money in a mutual fund of any sort is an idiot."] (Investment Research Dynamics)

Bombardier to cut 1,800 jobs, aerospace head retires (Reuters)

NASA contractor plans to make 500 layoffs (KPRC Houston)

     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, 07-24-14)

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.)

"Applicants for regular state unemployment-insurance benefits in the week that ended July 19 dropped by 19,000 to 284,000 — the lowest level since February 2006, the U.S. Labor Department reported Thursday." (Marketwatch)

Jobless Claims in U.S. Unexpectedly Drop to Eight-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.