Monday, March 2, 2015

Monday roundup (03-02-15)

World's Largest Container-Shipper Warns Global Trade Is Slowing Down (ZeroHedge blog)

When Will The Debt Picture Implode? [Scary.. Charts] (ValueWalk)

Why negative interest rates could become the new normal: One still might think that it makes sense to hold cash directly, rather than holding an asset with a negative return. But holding cash can be risky, as Greek savers have learned by Nouriel Roubini [Project Syndicate via] (The Guardian)

Eurozone Prices Continue to Fall, Fueling Concerns (The New York Times) Eurozone's deflation fight remains 'uphill battle' despite February improvement: Eurozone prices fall by 0.3pc in February, though analysts say shallower deflation and better-than-expected jobless figures not enough to reduce fears of a deflationary spiral (The Telegraph)

Greece is negotiating a third bailout of up to €50 billion (The Business Insider) Greece May Need Third Rescue, EU’s Dombrovskis Says (Bloomberg) Euro zone not discussing third Greek bailout-Eurogroup head's spokeswoman (Reuters) Third Greece bailout 'discussed': Eurozone nations are negotiating a third bailout for financially strapped Greece that would give the country as much as 50 billion euro (£36 billion), Spanish economy minister Luis de Guindos said. (The Press Association) Mixed messages on third Greek bailout talks (Reuters)

Greece seeks negotiations on ECB bond repayment (Reuters)

Greece bailout: EU 'mediating' Greek row with Spain and Portugal (The BBC)

Greece eyes last central bank funds to avert IMF default: Syriza is not interested in emergency EMU funding if it means kowtowing to Troika demands by Ambrose Evans-Pritchard (The Telegraph)

To beat austerity, Greece must break free from the euro: We are deluded to think we can achieve real change within the common currency. Syriza should be radical (The Guardian)

David Blanchflower: Deflation is bad news - and Britain is likely to be next to get it (The Independent)

Deflation risk is now a worry even for China (CNNMoney)

Last Week Tonight with John Oliver: Infrastructure [in the United States] (HBO) (Youtube)



France to cut 22,000 hospital jobs to save €3b (The Local)

     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, March 1, 2015

Sunday roundup (03-01-15)

Greek debt becoming less sustainable: Fiscal course makes targets harder to meet, and too much talk is doing nothing to build bridges with lenders (ekathimerini)

Alexis Tsipras comes under fire from Spanish prime minister: Mariano Rajoy hits back over accusation that Spain and Portugal deliberately tried to bring Greece’s Syriza administration into ‘unconditional surrender’ (The Guardian)

Wal-Mart's pay hike will have massive ripple effects in America [The Observer, the Sunday Edition of The Guardian, via] (The Business Insider)

UN-AU mission in Darfur cuts 770 jobs (News24)

GM to Close Indonesia Plant, Cut About 500 Jobs: The Bekasi plant will close by the end of June (The Wall Street Journal)

     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, February 28, 2015

Saturday roundup (02-28-15)

Humiliated Greece eyes Byzantine pivot as crisis deepens: Neither side holds the upper hand in the strategic game of chicken which could still see Greece forced out of the euro by Ambrose Evans-Pritchard (The Telegraph)

What Greece Has to Do Now: Fix Its Economy (The Harvard Business Review)

China cuts rates again in face of weak demand, deflation risk (Reuters)

Study: Suicide Rise In Middle-Age Adults [in the United States] Linked To Recession (CBS DC)

February 2015: Unofficial Problem Bank list declines to 357 Institutions (Calculated Risk blog) [Meanwhile,] Number of Problem Banks [Within the OFFICIAL list] Declines for 15th Consecutive Quarter (Problem Bank List)

Doral Bank Collapses After Years of Financial Losses – Largest Bank Failure Since 2010 [-- failure posted here yesterday] (Problem Bank List)

RBS to Cut More Than 1,000 Jobs at U.S. Trading Unit, CFO Says (Bloomberg)

Dresser-Rand plans major job cuts [of almost 650 jobs] (The Houston Business Journal)

     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, February 27, 2015

Friday roundup (02-27-15)

EU Commission urges France to cut deficit at quicker pace (Reuters)

Japan's war on deflation cast in fresh doubt: Japan's inflation rate has slowed for the sixth month in a row despite the Bank of Japan's massive monetary stimulus to spur growth. Falling prices put a damper on Tokyo's hopes to overcome years of deflation. (Deutsche Welle)

Forget Greece, Japan is the world's real economic time bomb: How Japan handles its government debt will have a bigger impact on the U.S. economy. (Fortune)

U.S. fourth-quarter GDP chopped to 2.2% from 2.6% (Marketwatch)

The one thing that could cut the economic recovery short: If you want a picture of the recovery's future, imagine a trade deficit stamping on the economy's face—forever. (The Washington Post blogs)

U.S. student loans could need $500 bln bailout (Reuters blogs)

FDIC Closes Puerto Rico's Doral Bank; Banco Popular Steps In -- ["'It is the largest bank failure in five years,' David Barr, a spokesman for the Federal Deposit Insurance Corp., said by phone."] (The Associated Press) Doral Bank of San Juan, Puerto Rico, had a troubled assets ratio of 196 percent. (BankTracker) ["This was a decent size bank a fairly large hit to the DIF" (= Deposit Insurance Fund).] (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.

Thursday, February 26, 2015

Thursday roundup (02-27-15)

When do we decide that Europe must restructure much of its debt? by Michael Pettis (China Financial Markets blog)

Greece bailout saga strains German patience: Angela Merkel is likely to win the Bundestag vote to back the four-month bailout extension – but with grudging acceptance (The Guardian) Germany set to approve Greek bailout extension: Germany's parliament appears set to approve an extension of Greece's financial bailout. All eurozone member states must ratify the extension for it to take effect before Athens runs out of funds at the end of the month. (Deutsche Welle) Debt, drachmas and devaluation: A leading German economist has urged Athens to scrap its bailout deal and stop using the euro as lawmakers in Berlin gear up for a vote later this week aimed at keeping Greece in the common currency bloc. [Feb. 25] (Deutsche Welle)

Yanis Varoufakis interview: ‘Anything’s better than austerity': Greek finance minister insists deal with troika has not compromised his leftist principles (The Irish Times)

Greece Isn’t the Eurozone’s Only Political Headache: Greece and Europe have reached agreement, but political risk hasn’t gone away. Spain may yet pose headaches for investors (The Wall Street Journal)

Gas’s Drop Drives U.S. Into Deflation Territory: Consumer-price gauge shows 0.1% year-over-year decline in January, first since October 2009, amid sharp fall in gas costs (The Wall Street Journal) Key Measures Show Low Inflation in January (Calculated Risk blog)

Pew study: Americans still stressed despite improved economy (The Associated Press)

The US recovery story is a fraud: SocGen bear (CNBC)

When And Why Government Debt Could Become A Major Problem (Forbes)

Microsoft to cut 9,000 Nokia jobs in China (Marketwatch)

RBS to Cut More Than 1,000 Jobs at U.S. Trading Unit, CFO Says (Bloomberg)

KLM TO CUT UP TO 1000 JOBS (NL Times)

     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, 02-26-15)

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.)

"Initial jobless claims jumped by 31,000 to 313,000 in the seven days from Feb. 15 to Feb. 21, the Labor Department said Thursday." (Marketwatch)

Applications for US unemployment benefits jump to 313,000; level still points to solid hiring (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.

Wednesday, February 25, 2015

Wednesday roundup (02-25-15)

Germany Sells Five-Year Debt at Negative Yield [For the First Time Ever] (The New York Times blogs)

EU gives France to 2017 to cut deficit, Italy, Belgium in clear (Reuters)

Greek PM briefs party lawmakers on bailout pledges amid signs of rancor over concessions (The Associated Press) Greece to stop privatisations as Syriza faces backlash on deal: The Syriza leadership risks falling between two stools as it tries chip away at the austerity regime without triggering Greece's ejection from the euro by Ambrose Evans-Pritchard (The Telegraph)

China central bank newspaper warns of rising deflation risk (Reuters)

[US] Regulator warns of 'Armageddon' cyber attack on banks (USAToday)

Morgan Stanley Agrees to $2.6 Billion Mortgage Settlement (Bloomberg)

[Meanwhile,] BNY Mellon in forex settlement talks with U.S., N.Y. - sources (Reuters)

City schools face $60 million deficit even without state cuts [Feb. 17] (The Baltimore Sun)

RI on track to run $27M deficit this year: Gov. Raimondo's plan to eliminate shortfall coming next month (WPRI)

     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.