Friday, November 30, 2012

Friday roundup (11-30-12)

Quote of the Day: "... the major conflict on the planet has ... everything to do with the impact of the shadow banking system. That's what's actually caused this enormous catastrophe around the globe financially. ... And we have to say that the finance sector, once it grows past the stage where it services entrepreneurs and investment -- it becomes a parasite. And we've now got the biggest parasite probably in the history of humanity in this financial system today ... they fund mergers and acquisitions, leveraged buyouts, mortgage-backed securities, and all this continuous production of derivatives, which is giving us this massive debt overhang without increasing the productive capacity of society. And that's why we're in this stench right now. ... we have to realize the finance system will always want to create more debt, because creating debt is the source of their making profits. So they're going to try to find some way to con us into more debt. And the best way is through Ponzi schemes that generate asset bubbles in shares and property. And we're living through, again, the biggest we've seen on the globe on that front." -- Economist Steve Keen on Max Kaiser's The Kaiser Report. (Russia Today)

Eurozone unemployment hits record high of 11.7pc: Recession in the eurozone forced a further 173,000 people out of work during October and pushed the unemployment rate to a record high of 11.7pc. (The Telegraph) Euro-Zone Inflation Falls Sharply, Unemployment Rises Again (The Wall Street Journal)

Moody's downgrades eurozone's rescue funds: The eurozone was dealt a fresh blow as Moody’s Investors Service downgraded the region’s rescue funds and unemployment hit a new record high. (The Telegraph)

Basel Committee Said to Consider Delay of Bank Liquidity Rule (Bloomberg)

Italy Unemployment Rose to Highest in 13 Years in October (Bloomberg)

Amsterdam auto show canceled due to economic crisis
(Reuters)

Fourth Quarter [in the US] Looking Worse and Worse (The Wall Street Journal blogs)

Researchers: Most economic uncertainty since Great Depression (The Stanford [University] Daily)

Boehner says fiscal talks 'going nowhere,' as Obama warns of middle class tax hikes (FoxNews) Boehner: 'Fiscal cliff' talks hit 'stalemate' (The Los Angeles Times) Obama Warns of ‘Prolonged’ Talks as Republicans Rebuff Plan (Bloomberg) Q&A: The Fiscal Cliff: Key points about the looming national debt crisis (The Washington Post)

Only three major U.S. cities [Dallas, Texas; Pittsburgh, Pennsylvania; and Knoxville, Tennessee] see economic recovery: study (Reuters)

Osram to cut 4,700 jobs after spin-off from Siemens (Reuters) Siemens to Cut 4,700 More Lighting Jobs to Save $1.3 Bln (Bloomberg)

EADS's Cassidian To Cut Up To 850 Jobs, Mainly In Management, Administration (Dow Jones Newswires

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Thursday, November 29, 2012

Thursday roundup (11-29-12)


Citigroup sentences to Europe to faster economic death (The Telegraph blogs)

Lending in Euro Zone Continued to Fall in October (The New York Times)

Greek deal frays as IMF threatens walk-out on debt buy-back impasse: The eurozone's debt relief plan for Greece has hit serious trouble within days as banks and pension funds balk at fresh losses, raising fears that the package could unravel before a deadline in mid-December. (The Telegraph)

IIF: Outcome of Greek Debt Buyback Still Uncertain (The Wall Street Journal)

Spain’s Chances of Recovery Soon ‘Remote:’ OECD (CNBC)

[UK's] Banks are accused of not being as strong as they claim and hiding £60bn black hole from investors (The Daily Mail) Bank of England fears that financial system needs more capital: Bank's financial stability review calls on the FSA to conduct a 'proper valuation' of bank assets amid concerns that they are sitting on hidden losses (The Guardian) Bank of England fears UK's fate will echo Japan's: BoE's financial policy committee believes action is needed to force lenders to improve their financial resilience (The Guardian) UK banks face £60bn black hole: Britain's banks face a financial black hole of up to £60bn from regulatory demands, hidden losses, and potential mis-selling costs that threaten to jeopardise future growth, the Bank of England has warned. (The Telegraph) At last the Bank is tackling the regulatory fiasco of Britain's accounting system: Sir Mervyn King has just dropped a bombshell on British banks by demanding a £35bn capital raising. But the bigger shock is the reason why: bank accounts are “dishonest” because Britain's accounting rules are faulty. (The Telegraph) Bank of England says UK banks should act now to raise capital (Reuters)

ROSENBERG: In 2007, I Had A Conversation With [Future Bank of England governor] Mark Carney That Sent A Chill Up My Spine (The Business Insider)

After a bashing, BOJ weighs "big bang" war on deflation (Reuters)

Obama and Boehner seem to hit wall as 'fiscal cliff' looms: President Obama and Republicans stand their ground on proposed tax hikes for the wealthy as 'fiscal cliff' talks appear to stall. (The Los Angeles Times) Obama's 'Fiscal Cliff' Proposal: $1.6 Trillion in Tax Increases (CNBC) GOP: White House "fiscal cliff" idea "a joke" (CBSNews) Boehner sees no progress in "fiscal cliff" talks (Reuters)

Bowles pessimistic about avoiding 'fiscal cliff': Former co-chairman of the president's debt commission [tells a breakfast hosted by The Christian Science Monitor that he] is discouraged by the slow pace of negotiations. (USAToday) Bowles Says Fiscal Cliff Deal Unlikely by End of Year (Bloomberg)


John Mauldin Interviewing David Krone [chief of staff for Senate Majority Leader Harry Reid (D)] and Rob Lehman [chief of staff for Senator Rob Portman (R)] (Youtube)




ACHUTHAN: I Have One More Month On My Recession Call (The Business Insider) ECRI's Achuthan Defends Call for U.S. Recession: Lakshman Achuthan, chief operations officer of the Economic Cycle Research Institute, talks about the U.S. economy. Achuthan speaks with Tom Keene and Sara Eisen on Bloomberg Television's "Surveillance." (Bloomberg)



Ignore 'Fiscal Cliff,' US Is in Recession: ECRI's Achuthan (Yahoo's The Daily Ticker)



Sandy delivers heavy blow to US economy (Agence France Presse)

Dudley Sees Unacceptable Joblessness as More QE Weighed (Bloomberg) Job Creation via Jobless Benefits and Fed Money Printing are Both Signs We’re Living in a Modern Day Depression (Iacono Research)

Debt ceiling can be held off until early March, CBO says (Marketwatch)

Detroit on the Verge of Insolvency, Again (The Wall Street Journal) Detroit Bonds Cut Deeper Into Junk as Cash Crunch Nears (Bloomberg) Bankruptcy unattractive option for Detroit: Experts say Chap. 9 process long, costly, unpredictable (The Detroit News) State Senator Proposes Dissolving City Of Detroit (CBS Detroit)

Nokia Siemens to close Bruchsal plant in Germany [thereby cutting 650 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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Is it a recovery yet? (Weekly report, 11-29-12)


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.)

"Initial claims for unemployment benefits dropped again last week, to 393,000, as the jobs market continued to recover from Superstorm Sandy." (The Los Angeles Times)

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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Wednesday, November 28, 2012

Wednesday roundup (11-28-12)


As the Bailouts Continue in Europe, So Does the Flouting of Rules (The New York Times)

Fitch warns France could be downgraded [from AAA] next year (Reuters)

German media lament 'never-ending story' of Greek bailouts (Reuters)

Will Italy Need a Bailout in 2013? (CNBC)

Spain to overhaul rescued banks as condition of aid (Reuters)

Portuguese Join Europe’s Chorus of Discontent (The New York Times)

Carney will regret taking Bank of England reins: Even a Canadian banker can’t save U.K.’s economy (Marketwatch)

Fed's Evans wants more easing, Fisher wants limits (Reuters)

Nearly 15 million households on food stamps (CNNMoney) Food Stamp Use Up Nearly 10 Percent in 2011: In the District of Columbia, it climbed by more than 35 percent (U.S. News and World Report) Food Stamps Are An Antipoverty Program, But Fox Won't Tell You That (Media Matters for America blog)

USPS Chief Lays Out Plan for the Agency’s Survival (The Associated Press)

The Next Subprime Crisis Is Here: Over $120 Billion In Federal Student Loans In Default (ZeroHedge blog) The Scariest Chart Of The Quarter: Student Debt Bubble Officially Pops As 90+ Day Delinquency Rate Goes Parabolic (ZeroHedge blog)

Huge Banks Are A Benefit To Society [NOT!] (Cliff Küle's Notes blog)

Harrisburg, Pa. may soon renew bankruptcy threat as ban ends (Reuters)

Spain's Bankia eyes profit by 2013, to cut 6,000 jobs (Reuters)

Vivendi's SFR telecom unit to cut 856 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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Tuesday, November 27, 2012

Tuesday roundup (11-17-12)



O.E.C.D., Slashing Growth Outlook, Warns of Global Recession (The New York Times) A muted recovery is forecast for U.S. and global economies: The Organization for Economic Cooperation and Development warns, however, that U.S. fiscal policy risks and European debt crisis could cause another recession. (The Los Angeles Times) OECD warns that global recovery is being hobbled by euro crisis (The Associated Press) OECD Sees ‘Uneven” Global Economic Recovery (The Voice of America blogs)

European debt crisis a bigger global threat than US fiscal cliff, says OECD: Report says 'intensified euro area crisis' could destroy growth in Europe and also wipe out US recovery, causing recession (The Guardian)

OECD Says ECB Should Cut Rates as Deflationary Pressures Grow (Bloomberg) OECD urges eurozone to put brake on deficit cuts if outlook worsens (The Independent)

Time to rethink euro zone cutbacks, OECD says (Reuters)

To Avoid New Debt Crisis [?!], EU Takes Aim at Ratings Agencies (Bloomberg)

Greek bankruptcy averted, for now (The Associated Press) A glance at key figures on Greece’s public finances, economy and financial markets (The Associated Press) Greek Debt Deal Explained (The Wall Street Journal blogs)

Euro zone debt forgiveness lies ahead in Greek mire (Reuters) Eurozone states face losses on Greek debt (The Financial Times)

Merkel Did ‘Bare Minimum’ to Keep Greece Solvent: Analysts (CNBC) Germany Cautiously Confident Greece's Debt Buyback Program Will Work (The Wall Street Journal)

OECD warns against extra austerity measures in Spain (Reuters)

Portugal parliament approves austerity budget (Reuters) Portuguese lawmakers clear biting 2013 austerity budget (Agence France Presse)

From northern Canada, a tough economist will be Bank of England’s first foreign governor (The Washington Post) Two Moves Made During The Crisis Showed Why Mark Carney Is One Of The Shrewdest Central Bankers In The World (The Business Insider)

Japan's likely next PM keeps up calls for bold BOJ stimulus (Reuters)

U.S., Japan, said to face 'explosive' debt issues (The Canadian Broadcasting Corporation)

Reid Says Parties Making Little Progress in U.S. Budget Talks [to Avoid Year-end Fiscal Cliff] (Bloomberg)

The So-Called 'Fiscal Cliff' Is Austerity in Disguise (The Huffington Post blog) The Fiscal Cliff: Absolutely everything you could possibly need to know, in one FAQ (The Washington Post blogs)

Time running out on debt ceiling (CNNMoney)

Vital Signs Chart: Stalling U.S. Incomes (The Wall Street Journal blogs)

Americans continued paring household debt in third quarter (The Washington Post)

Student-Loan Delinquencies Now Surpass Credit Cards (CNBC) Student Loan Debt Rising, and Often Not Being Paid Back (The New York Times blogs)

Buffett wants Jamie Dimon as Treasury secretary (CNNMoney)

David Rosenberg: "What A Joke" - A Realistic Thanksgiving Postmortem (ZeroHedge 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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined. 

Monday, November 26, 2012

Monday roundup (11-26-12)


If These Two Brilliant Investors Are Right About Future Growth, The World Is Screwed (The Economist)

European Finance Ministers and I.M.F. Reach Agreement on Greek Bailout Terms (The New York Times) Euro zone, IMF agree on Greece aid deal (The Washington Post) Euro zone, IMF reach deal to cut long-term Greek debt (Reuters)

Why Europe Debt Defaults Are About to Rattle Stocks (CNBC)

Britain names Canadian to head Bank of England: Mark Carney, Canada's central bank chief, is to start in July as governor of the Bank of England. His tasks include reviving the British economy. (The Los Angeles Times) UK Names Carney as New Bank of England Chief (CNBC) Mark Carney: new age is dawning for the Bank as George Osborne bags his man: Something of a coup for Britain’s beleaguered coalition Government or more evidence that Goldman Sachs is taking over the world? (The Telegraph)

[On the bright side:] Too-big-to-fail bank problem may still exist, says FSB head [= Mark Carney, Nov. 8] (Reuters) BOC Gov Carney: Need More Regulation World's Biggest Banks [Nov. 8] (MNI)

[But ... not so fast ...] Mark Carney's 'shock' appointment means more of the same: Osborne's choice for governor of the Bank of England will do nothing to prevent the next collapse of the financial system (The Guardian) "Business leaders [in the UK] welcomed the decision." (The Daily Mail) Goldman's Global Domination Is Now Complete As Its Mark Carney Takes Over Bank Of England (ZeroHedge blog)

Italian Consumer Confidence Falls to Record Low on Recession (Bloomberg)

With "fiscal cliff" deadline nearing [for the US], parties still at odds (Reuters)

Walter to Become SEC Chairman After Schapiro Steps Down -- ["a move industry observers say will bring little change at the agency"] (Bloomberg) [Or, more directly stated:] Expect Wall Street's Crime Spree To Continue Unabated (The Golden Truth blog)

Economist Kaufman calls for breakup of banks (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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined. 

Sunday, November 25, 2012

Sunday roundup (11-25-12)


No Greek debt writedown in next rescue package: ECB's Asmussen (Reuters)

UK 'could face austerity until 2018' (The BBC) Austerity until 2018 and VAT to hit 25%: That's what it could take to cut deficit, experts tell Osborne (The Daily Mail) Osborne's austerity drive 'may have to last for eight years' (The Independent)

There is only one real answer [for the UK] - split the banks: Back in late 2008, in the immediate aftermath of the sub-prime crisis, those of us calling for a new “Glass-Steagall” split between commercial and investment banking were dubbed “Neanderthals” and “hot-heads”. (The Telegraph)

BoJ Minutes: Japan Must Win Critical Battle Against Deflation (RTTNews)

Fed’s Dudley Signals a Shift Toward Bank Reform (Bloomberg)

How Long Can You Collect Unemployment Benefits? (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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined. 

Saturday, November 24, 2012

Saturday roundup (11-24-12)


European banks urge one-year delay for Basel III rules (Reuters)

European Bankruptcies, Held at Bay, May Soon Jump (CNBC)

10,000 anti-austerity protesters march in Dublin against government plans for more cuts, taxes (The Associated Press)

Thousands of Italians rally against Monti's austerity (Reuters)

Top Culprit in the Financial Crisis: Human Nature: Kenneth Rogoff and Carmen Reinhart, who wrote This Time Is Different, say coming up with regulations to ward off financial disasters is a lot easier than getting people to keep them in place as years pass. (Barron's)

‘Be Careful What You Wish for’ Regarding Fiscal Cliff: Jim Rickards (Yahoo!'s The Daily Ticker)



Unofficial Problem Bank list unchanged at 857 Institutions (Calculated Risk blog)

Creating Shareholder Value (The Big Picture 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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined. 

Friday, November 23, 2012

Friday roundup (11-23-12)


EU budget summit ends without deal, retry in 2013 (Reuters)

Tata Steel to cut 900 jobs in Britain (Reuters)

Brazil's Gol to Eliminate WebJet Brand, Cut [850] Jobs, Capacity (Dow Jones Newswires)

GRANTHAM: We're Headed For A Disaster Of Biblical Proportions (The Business Insider)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined. 

Thursday, November 22, 2012

Thursday roundup (11-22-12)


Euro zone faces deepest downturn since early 2009 (Reuters) Latest eurozone PMI figures suggest downturn deepening: The eurozone has seen an ongoing steep decline as data shows the share currency bloc's economy is entrenched in the steepest downturn since mid-2009. (The Telegraph)

Standoff on Greece Driven by Short-Sighted Europolitics (Forbes)

Greece's Only Option Is Default [Op-Ed]: Suicides, a neo-Nazi party in Parliament, and a failing medical system. Writing down Greek debt means lenders will sustain short-term losses. But in return they will get long-term stability and economic growth. (The Wall Street Journal)

Dexia bank warns winding-up would pose systemic danger (Agence France Presse)

Gap in bank reforms puts customers' savings at risk, warns BoE Governor Sir Mervyn King: A loophole in the Government’s planned bank reforms risks leaving the taxpayer on the hook for billions of pounds in the next financial crisis, the Governor of the Bank of England has warned (The Telegraph)

Japan's Abe Pledges More Spending to Curb Deflation (The Wall Street Journal)

[Today is Thanksgiving Day in the United States, as well as the 49th anniversary of the assassination of John Fitzgerald Kennedy, the 35th President of the United States.]

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined. 

Wednesday, November 21, 2012

Wednesday roundup (11-21-12)


Greece's lenders fail again to clinch debt deal (Reuters)

Dangerous Euro Zone-IMF Split Persists over Greek Debt: Euro-zone finance ministers meeting in Brussels this week have been unable to reach an agreement with the International Monetary Fund on how to ensure that Greece's debt load comes down to manageable levels. Germany and other European countries continue to reject a new debt haircut. The standoff could become dangerous. (Spiegel Online) Even the IMF Agrees with Europe's Anti-Austerity Protests (The Nation)

Merkel ally rules out "haircut" after Greek deal failure (Reuters) Mixed Messages From Germany Complicate Greek Talks (The Wall Street Journal)

Eurozone stability depends on Greece talks, warns Samaras: The Greek prime minister Antonis Samaras warned the stability of the eurozone hangs in the balance after eurozone finance ministers failed to agree a deal over bail-out funds. (The Telegraph) Eurozone politicians striving for the impossible on Greece: Eurozone power group wants financing package small enough to maintain pretence last bailout is proceeding swimmingly – but they also want to make Greek debt sustainable. It can't be done (The Guardian)

Citi to close nearly half of branch network in Greece (Reuters)

Italy mayors march against austerity, threaten mass resignations (Reuters)

Widening UK budget deficit casts fresh gloom on economy (Reuters) "Worst policy mistake for a century": Chancellor's reckless austerity has had terrible consequences for ordinary people: He inherited an economy that was growing nicely then decimated growth and now the economy is getting sicker before our very eyes (The Mirror)

Cameron To Insist On Austerity In EU Budget (Sky News)

Greece Bailout Crisis a Warning for U.S. Politicians Facing the Nation's Fiscal Cliff (The Huffington Post blog)

Kyle Bass Interview: Kyle Bass has a conversation with Darden professor Ken Eades at the Darden School of Business University Investing Confernece 2012. (Youtube)



Jeremy Grantham offers most-depressing forecast ever: GMO strategist says 3% annual GDP growth now history; 'unpleasant facts' (Investment News) Jeremy Grantham Is Not Optimistic (Iacono Research) Jeremy Grantham (AA) Quarterly Letter: The Road to Zero Growth (Cliff Küle's Notes blog)

Twinkies maker Hostess wins court OK to close (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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined. 

Is it a recovery yet? (Weekly report, 11-21-12)


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.)

"Initial jobless claims dropped by 41,000 to a seasonally adjusted 410,000 in the week ended Nov. 17, the Labor Department said." (Marketwatch)

Weekly Initial Unemployment Claims decline to 410,000 (Calculated Risk blog)

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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.

Tuesday, November 20, 2012

Tuesday roundup (11-20-12)


Morgan Stanley’s Doom Scenario: Major Recession in 2013 (CNBC)

Eurozone risks rising as outlook darkens (CNNMoney)

French Downgrade Widens Gulf With Germany as Talks Loom: Economy (Bloomberg)

Euro zone, IMF fail to strike Greek debt deal (Reuters)

Greek debt can only become sustainable by 2022 if all steps taken - document (Reuters)

Greece Needs Growth, Not Austerity (Bloomberg)

Norway: The Last Haven?: Forget the U.S. dollar, Swiss franc, pound sterling and Japanese yen. Analysts say the krone is the last safe haven currency. (Institutional Investor)

Japan’s Exports Reach Three-Year Low as Recession Looms: Economy (Bloomberg) Japan exports drop again, adds to recession concerns (Reuters) Japan Trade Deficit Stokes Recession Concerns (The Wall Street Journal)

Is this the deal that will end the [US] austerity crisis? (The Washington Post blogs)

Economists React: The Fiscal Cliff ‘Can’t Be Fully Avoided’ (The Wall Street Journal blogs)

Tight Lending Is Choking Nascent Housing Recovery (NBCNews)

Big Banks vs. Elizabeth Warren: It's On (Again!): The fight between the financial industry and Senator-elect Elizabeth Warren heats up again over her possible nomination to the Senate banking committee. (Mother Jones)

Washington Federal CEO: Bring back Glass-Steagall (The Puget Sound Business Journal)

Big problem: Too-big-to-fail banks too big again (Philly Burbs)

Why So Many Americans Don’t Have Bank Accounts (Time)

Austerity: A Violation of Human Rights? (The Nation blogs) [Your blogger wonders: What if debt-driven bubbles were the real violations of human rights?]

Our Dust Bowl Economy by Charles Hugh Smith (Of Two Minds blog) The Dust Bowl (PBS)

Hostess, union fail to reach agreement, bankruptcy plans move forward (The Associated Press) Hostess liquidation likely as mediation fails (CNNMoney)

SAS Pushes Through Plan to Shrink Airline [by 7,000 Jobs] as Unions Sign Up (The Washington Post)

Newcastle Council cuts 1,300 jobs to save £90m (The BBC)

Premier Foods cuts 900 jobs at breads division (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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Monday, November 19, 2012

Monday roundup (11-19-12)


Europe Leaders Face Greek Aid Gap in Brinkmanship With IMF (Bloomberg)

Deutsche Bank CEO says bank sector too dependent on ECB cash (Reuters) Deutsche Bank Co-CEO: ECB Keeping Some Banks Afloat With Cheap Money (Dow Jones Newswires)

France loses another AAA rating with Moody's downgrade (CNNMoney)

Spain banks bad loans hit new high in September (Reuters) Spain’s Banking Problems Are a Global Reality (The Wall Street Journal blogs)

Portugal Sees Debt at 120% of GDP This Year, Peaking in 2014 (Bloomberg) Portugal passes bailout review, risks remain high (Reuters)

NY Fed’s Dudley: “Blunter approach may yet prove necessary” for too-big-to-fail banks (Reuters blogs)

This graph should scare you (The Washington Post blogs) Washington Post: ‘This Economic Recovery Has Been a Big Disappointment’ (National Review)

Hostess shutdown on hold (CNNMoney)

Comet administrators cut another 735 jobs: The administrators to Comet are cutting another 735 jobs and dramatically downsizing its home delivery service as fears mount for the future of the retailer's workforce. (The Telegraph)

Hochtief to cut 700 jobs on weak orders (Reuters)

Cliffs cutting iron production, affecting 625 jobs (The Associated Press)

UTC Aerospace to cut 500 jobs, 18 in Conn. (The Journal Inquirer of Manchester CT)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Sunday, November 18, 2012

Sunday roundup (11-18-12)


Shadow Banking Grows to $67 Trillion Industry, Regulators Say (Bloomberg) Beyond Regulators' Grasp: How Shadow Banks Rule the World: Beyond the banking world, a parallel universe of shadow banks has grown in the form of hedge funds and money market funds. They're outside the reach of conventional financial regulation, prompting authorities to plan introducing new rules to prevent the obscure sector from triggering a new financial crisis. But in doing so they risk drying up an important source of funding to banks and firms. [Nov. 14] (Spiegel Online)

Kyle Bass: Very Few Get the `Crisis Correct' (Bloomberg)



Prison of Debt Paralyzes West: Be it the United States or the European Union, most Western countries are so highly indebted today that the markets have a greater say in their policies than the people. Why are democratic countries so pathetic when it comes to managing their money sustainably? (Spiegel Online)

Merkel's day of reckoning as taxpayer haircut on Greece looms: Germany, Holland, and the creditor states of northern Europe have not lost a single cent on eurozone rescue packages, so far. (The Telegraph)

ECB's Asmussen says Greece to need aid beyond 2014 (The Associated Press)

Thousands of Spanish police protest austerity cuts hitting them, including no Christmas bonus (The Associated Press)

Popularity of France's Hollande continues decline: poll (Reuters)

Sheila Bair Says We're Headed for Another Crisis: The former head of the FDIC thinks we're in the middle of a "bond bubble." (The Atlantic)

We Are Speeding Towards Economic & Social Devastation -- ["Andrew Dickson White was a professor of history in the second half of the 19th century. ... White’s relevance to today’s investors is his compilation of a lecture that looked at the French experience with fiat money during the French Revolution in the waning years of the 18th century.  His work was published in book form under the title of 'Fiat Money Inflation In France'."] (King World News) Norway Central Banker Reviles Fed Cash in John Law Quip (Bloomberg) Fiat Money in France by Andrew Dickson White, Introduction by Henry Hazlitt (Archive)

Fiat money inflation in France - Part 1: John Law (Youtube)



Fiat money inflation in France - Part 2: Assignats (Youtube)




The Past of the Dust Bowl Is Very Present In Ken Burns’ New Documentary (National Geographic) Ken Burns' 'The Dust Bowl' uses personal stories to take you back to the horror (The Plain Dealer of Cleveland OH blogs) THE DUST BOWL: A Film By Ken Burns | Premieres Sun., Nov. 18th | PBS (Youtube)




     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Saturday, November 17, 2012

Saturday roundup (11-17-12)


World Production Stagnates (The Big Picture blog)

As eurozone economy shrinks, govt debt loads grow (The Associated Press)

Europe’s New Fascists (The New York Times) Niall Ferguson on Europe’s New Fascists [Oct. 8] (Newsweek)

Euro zone, IMF make progress on Greece: Juncker (Reuters) [But] Lagarde says Greek program should be "rooted in reality" (Reuters)

German central bank chief: Greece will eventually need debt haircut, after cuts and reforms (The Associated Press)

Italy's austerity may have saved the euro, says Mario Monti: Mario Monti, the Italian prime minister, says the country's austerity effort may have prevented a eurozone break-up, as the problem of Greece stokes international tensions. (The Telegraph) Monti says Italy austerity may have saved eurozone (Agence France Presse)  [But] Italy's Berlusconi says Monti's policy "disastrous" (Reuters)

Export grain prices soar as US shippers fear Mississippi closure [owing to low water levels] (Reuters)

Unofficial Problem Bank list declines to 857 Institutions (Calculated Risk blog)

Florida prison health care system to cut 1,890 jobs (The Tampa Bay [FL] Times)

Kaiser Permanente lays off 530 employees in Southern California (The Press-Telegram of Long Beach CA)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Friday, November 16, 2012

Friday roundup (11-16-12)


The time-bomb at the heart of Europe: Why France could become the biggest danger to Europe’s single currency (The Economist)

Whether ‘Fiscal Cliff’ or Debtpocalypse, by Any Name, It Spells Austerity (The New York Times)

What the New President Should Consider by Paul Volcker (The New York Review of Books)

US Business Confidence Continues Its Stunning Collapse (The Business Insider)

The Next Housing Bailout? Big Trouble Brewing at the FHA: Housing is at the center of the economy. The Federal Housing Administration is at the center of housing. And there's a danger that it could require a historic bailout next year. (The Atlantic) F.H.A. Hopes to Avoid a Bailout by Treasury (The New York Times)

To Stem Losses, FHA Mortgages Get More Expensive (CNBC)

Regulators seize small bank in Georgia, bringing to 50 the number of US failures this year (The Associated Press) Hometown Community Bank of Braselton GA had a troubled assets ratio of 430.4%. (BankTracker) Hometown Community Bank, Georgia, Closed By Regulators (Problem Bank List)

Hostess to close, lay off 18,500 after 'crippling' union fight (FoxNews) Hostess Bankruptcy: One Big Win for Labor Unions, One Big Loss for Laborers (Policymic) Hostess, maker of Twinkies, to go out of business; strike cited (The Los Angeles Times)

Will Hostess Cuts Show Up in Jobs Report? (The Wall Street Journal blogs)

Medical giant Stryker cuts 1,170 jobs, citing ObamaCare (FoxNews)

United Technologies laying off 500 workers, including 4 in Charlotte area (The Charlotte Observer)

Threat of ‘Spectacular’ Cyberattack Looms: Official (CNBC)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Thursday, November 15, 2012

Thursday roundup (11-15-12)


1930s medicine pushes Europe back into double-dip recession: The eurozone has relapsed into double-dip recession as the austerity shock in the Mediterranean region spreads to the core countries of the north. (The Telegraph) The eurozone in recession in ‘all senses of the word’ (FT Alphaville blog) Euro Zone Recession Is Reinforced by Slump in a Second Quarter (The New York Times) Europe's economy returns to recession (The Associated Press)

IMF's Lagarde says important for euro zone to forge deal on Greece (Reuters)

Greeks Pelt German Diplomat in Austerity Protest (The New York Times)

French Economy Barely Grows as Hollande Faces Jobless Surge (Bloomberg)

U.K. Lawmakers Say RBS Bailout Cash May Not Be Recovered (Bloomberg)

Chinese perma-growth at risk as Leninists tighten Politburo grip (The Telegraph blogs)

Bartiromo: ‘Fiscal Cliff’ Deal? Don’t Count on It (CNBC)

Fiscal cliff will roil state budgets (CNNMoney)

Postal Service posts record $16 billion loss for 2012 (CNNMoney)

FHA likely to need a taxpayer bailout: report (Reuters) FHA Needs Bailout From Treasury to Plug Budget, Bachus Says (Bloomberg) 2012 FHA Actuarial Review Released: Negative $13.5 Billion economic value (Calculated Risk blog) FHA running out of money (The Washington Post)

U.S. says [it plans] to take steps to fill FHA capital hole, avoid bailout (Reuters)

Bernanke suggests Mortgage Lending Standards are "Overly Tight", "Pendulum has swung too far" (Calculated Risk blog)

Report on MF Global faults regulators (The Washington Post) Financial Services Subcommittee Report Finds Decisions by Corzine, Lack of Communication Between Regulators Led to MF Global Bankruptcy and Loss of Customer Funds (The US House of Representatives Committee on Financial Services)

BP Will Plead Guilty and Pay Over $4 Billion (The New York Times)

10 L.A. County courthouses to close: Budget cuts are forcing the shuttering of courthouses in Beverly Hills, West Los Angeles, Malibu and other locations. The closures are expected to occur over the next eight months. (The Los Angeles Times)

Ericsson announces 1,500 job cuts in Sweden (Ice News)

Dutch financial group SNS Reaal to trim 750 jobs (Reuters)

RailCorp to shed nearly 700 jobs (The Australian Broadcasting Corporation)

     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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

Is it a recovery yet? (Weekly report, 11-15-12)



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.)

"Applications for jobless benefits surged by 78,000 to 439,000 in the week ended Nov. 10, the most since April 2011, the Labor Department said today in Washington." (Bloomberg)

Jobless Claims Jump to 439,000 (Iacono Research)

Weekly Initial Unemployment Claims increased sharply to 439,000 (Calculated Risk blog)

Stormy Statistical Subterfuge & Jobless Claims (The Capital Spectator)

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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest that an energy shock may be coming much closer in time than is generally imagined.


Wednesday, November 14, 2012

Wednesday roundup (11-14-12)


Euro zone seen sinking into recession as Germany struggles (Reuters)

Anti-austerity marches turn violent across southern Europe (Reuters) Anti-austerity strikes sweep Europe (Reuters)

Greece sinks deeper into depression in third quarter (Reuters) Greek economy shrinks for 17th quarter: Greece's economy shrank for the 17th consecutive quarter and is now 7.2pc smaller than it was at the same time last year, according to data that triggered fresh protests for the austerity programmes to be overhauled. (The Telegraph)

Greek finance minister warns default risk 'very high': Greece faces a "very high" risk of default, Finance Minister Yannis Stournaras warned Tuesday, urging his EU partners to recognise the limits to which his bailed out country could go in resolving its debt problems. (Agence France Presse)

UK would lose AAA status if it enters triple-dip recession, says ratings agency: Moody's warning to George Osborne follows decision by Bank of England to halve growth forecast for 2013 to 1% (The Guardian)

U.K. Jobless Claims Unexpectedly Rise as Labor Market Slows (Bloomberg)

Number of homeless children [in the UK] soars by 60 per cent in a year (The Independent)

New Archbishop of Canterbury takes RBS chief Stephen Hester to task: Justin Welby, the incoming Archbishop of Canterbury, has upbraided Stephen Hester, the boss of Royal Bank of Scotland, for failing to explain the lender's "duty to society". (The Telegraph)

Japan government to downgrade economic assessment in November: sources (Reuters)

Nearly 50 million Americans in poverty under alternate measure (CNNMoney) Alternative Measure Sees More People Living in Poverty (The Wall Street Journal blogs)

US could be on path to fifth straight $1 trillion deficit after government runs $120 billion October deficit (The Associated Press)

Fiscal Cliff: Sense and Nonsense (Think Markets blog)

Fiscal cliff isn’t America’s worst money problem: Take strong medicine now to cure toxic economic policies by Satyajit Das (Marketwatch)

Obama to seek $1.6 tln in new tax revenue: reports (Marketwatch)

U.S. credit rating could again take hit in 2013 (Reuters)

FHA close to running out of reserves: report (Marketwatch) A Very Important Housing Agency Is Running Out Of Money And May Need A Bailout; Getting A Mortgage Might Get Even Harder (Forbes)

Retail Sales in U.S. Decrease for First Time in 4 Months (Bloomberg) Retail Sales Fall in October, Halting Three Month Rise (Iacono Research) Worries That Retail Weakness Extends Beyond Sandy (The Wall Street Journal blogs)

Corzine Decisions Felled MF Global, House Republicans Say (Bloomberg) Congressional Report Blames Corzine for MF Global’s Collapse (The New York Times blogs)

Benedictine Nuns Ask Citigroup Board to Explore Break-Up (Bloomberg) Why Nuns, Yes Nuns, Think Citigroup Should Break Up (Forbes)

Federal regulators urge SEC to act on money funds (Marketwatch)

Hostess threatens total liquidation unless strike ends Thursday (Kansas City Business Journal)

Panasonic prepares for "garage sale", to axe 10,000 jobs (Reuters)

Spain's Bankia to lay off 5,000 workers: report (Marketwatch)

Texas Instruments to cut 1,700 jobs to reduce costs (Reuters)

UK Education Dept. To Cut 1,000 Jobs, Slash Budget By Half (International Business Times) Gove moves to sack 1,000 civil servants: Minister aims to halve his department's running costs (The Daily Mail)

Wake Forest Baptist Hospital to eliminate 950 jobs (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 that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.